In a recent interview Scott Minerd, chief investment officer (CIO) of Guggenheim Partners and stock market investor, expressed that Bitcoin could collapse further and fall to $8,000 from its current levels.
That is, a drop of more than 70% from the current price, which according to CoinMarketCap is at $29,154. Indeed, since dropping below $30,000 earlier this month, Bitcoin has struggled to essentially rise above that level.
Now, if Scott Minerd’s prediction came true, it would cause more distress to Bitcoin. And of course, to the crypto market in general.
By the way, Minerd’s comments come, after the president of the European Central Bank, Christine Lagarde, said that cryptocurrencies are “worthless and should be regulated.”
BTC bearish at $8,000 according to Scott Minerd
Specifically, Scott Minerd made the point to CNBC’s Andrew Ross Sorkin in an interview at the World Economic Forum in Davos, Switzerland.
«When it breaks below $30,000 consistently, $8,000 is the bottom line. So I think we have a lot more room for the low. Especially considering that the US Federal Reserve (FED) is implementing restrictive measures on the economy in an attempt to control inflation».
In addition, he added: “Ethereum and Bitcoin will be survivors. I still don’t think we’ve seen the dominant player in the cryptocurrency industry».
As a fun fact, Scott Minerd also claimed that most cryptocurrencies are junk.
«Let’s face it: most of these coins aren’t coins, they’re junk».
The comparison to the dotcom bubble
Likewise, Scott Minerd compared the current situation to the dotcom bubble of the early 2000s.
«If we were sitting here in the Internet bubble, we’d be talking about how Yahoo and America Online were the big winners».
He also expressed: “I don’t think we’ve had the right prototype for cryptocurrencies. Currency should store value, be a medium of exchange and a unit of account. None of these things happen, they don’t even happen on a».
In particular, Minerd added that additional technological advances could change that. And help create an ecosystem where people get used to using cryptocurrencies for transactions and are confident that they will retain their value.
In any case, what do you think of Scott Minerd’s forecast on the Bitcoin price? Let me know in the comment box.
I close with this quote from Hetty Green: “Before deciding on an investment I look for all kinds of information about it».
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