Bitcoin could fall further and fall to $ 8,000 from its current levels, Scott Minerd, Guggenheim’s chief investment officer, predicted on Monday.
That would be a drop of more than 70% from Monday morning’s price of just over $ 30,000.
“It simply came to our notice then [dollars] constantly, 8,000 [dollars] It’s the bottom line, so I think we have a lot more room to fall, especially because the Fed is restrictive, “Minerd told CNBC’s Andrew Ross Sorkin in a” Squawk Box “interview at the World Economic Forum in Davos, Switzerland. Monday. . .
Minerd refers to the rise in interest rates and the tightening of monetary policy by the US Federal Reserve.
Since falling below $ 30,000 earlier this month, bitcoin has struggled to rise significantly above that level. It has regularly dropped below $ 30,000.
Scott Minerd, Chief Investment Officer of Guggenheim Partners LLC, at the WEF in Davos, Switzerland, on May 23, 2022.
Adam Galici | CNBC
If Minerd’s predictions come true, it would cause more pain for bitcoin and the wider cryptocurrency market, which was wiped out by some $ 500 billion worth of value last month. Bitcoin has been down about 24% in just the last 30 days.
The CIO also said that most cryptocurrencies are “junk”, but bitcoin and ethereum will survive.
“Most of these coins are not coins, they are rubbish,” he said.
Still, he said, “I don’t think we’ve seen the dominant crypto player yet.”
Minerd compared the current situation to the dot com bubble of the early 2000s.
“If we were here in the dot com bubble, we would be talking about how Yahoo and America Online were the big winners,” he said. “Anything else, we couldn’t tell you if Amazon or Pets.com would be the winner.”
“I don’t think we’ve had the right prototype for cryptography yet,” he said, arguing that money should be stored value, be a medium of exchange, and a unit of account.
“None of that happens, it doesn’t even happen on a base,” he said. Minerd added that further technological advances could change this and help create an ecosystem where people get used to using cryptocurrencies for transactions and are confident it will retain its value.
Minerd’s comments come after European Central Bank President Christine Lagarde said cryptocurrencies “have no value”.
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