Bitcoin (BTC) could fall to $8,000, a 70% drop: Guggenheim’s Minerd
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Scott Minerd is Chairman Investments and Global Chief Investment officer, Guggenheim Partners. He spoke at the Milken Institute Global Conference, Beverly Hills, California on May 2, 2022.
AFP – Getty Images| AFP | Getty Images
BitcoinGuggenheim chief Investment Officer Scott Minerd said Monday that it could plunge further to $8,000 and then fall again from current levels.
This would be a drop of more than 70% from Monday’s average price of $30,000.
“When you reach below 30,000 [dollars] consistently, 8,000 [dollars]Minerd explained that Davos is the absolute bottom and that we still have room for improvement, especially given the Fed’s restrictive policies.
Minerd refers to U.S. Federal Reserve’s raising of interest rates, and tightening monetary policy.
Bitcoin has been struggling to rise significantly above $30,000 since it fell below that mark earlier in the month. Bitcoin has fallen below $30,000.
Minerd forecasts that bitcoin will fall further if it is true. This would be a huge blow to the cryptocurrency market, which already has lost around $500 billion in value over the last month. Bitcoin has fallen around 24% over the past 30 days.
CIO stated that crypto in general is junk, but that bitcoins and ethereum are going to survive.
He said, “Most currencies are not currencies. They’re junk.”
He said that despite this, he didn’t believe we have yet seen crypto’s dominant player.
Minerd said that the current state of affairs is similar to the dotcom bubble in the early 2000s.
He stated, “If you were in this internet bubble, you would be discussing Yahoo and America Online being the great winners.” We couldn’t give you any other information if we didn’t know. AmazonPets.com won the contest.”
He said that he didn’t believe we had yet the perfect prototype for crypto. Currency must store value and be an exchange medium.
He said, “All of these things fail. They don’t even succeed on one basis.” Minerd said that technological advancements could help change this and create an environment where people can use cryptocurrencies to transact and feel confident that they will remain valuable.
Minerd’s comments come after European Central Bank President Christine LagardeSay cryptocurrencies are “worth nothing.”
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