Bitcoin Price Could Fall To $8,000, Says Guggenheim CIO
Hearing more negative speculation would be unpleasant for the investors as the recent bloodbath’s catastrophic effects already slowed down crypto markets. But unfortunately, an expert predicted Bitcoin would go far below.
Scott Minerd, Chief officer at Guggenheim Partners, a global investment and advisory firm handling $325 billion under its management, speculated that the Bitcoin price could plummet to $8,000. He is the same man who once said in December that “Bitcoin price should be $400,000.”
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The speculation refers to a nearly 70% drop from today’s price of BTC, fluctuating around $30,000.
BTC Could Fall With The Fed Being Restrictive
Speaking with the CNBC’s Andrew Ross Sorkin in an interview held on Monday at World Economic Forum, Switzerland, he said;
When you break below 30,000 [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive.
Minerd highlighted the relationship between BTC price and Fed regulation and tightening policies.
Following its previous high of November 10, when BTC’s price marked $69,044, it decreased by around 58% of its value.
“Most of these currencies, they’re not currencies, they’re junk,” he added, saying that “I don’t think we’ve seen the dominant player in crypto yet.”
Comparing the current situation with the dotcom bubble of the early 2000s, he said;
“If we were sitting here in the internet bubble, we would be talking about how Yahoo and America Online were the great winners,” adding that “Everything else, we couldn’t tell you if Amazon or Pets.com was going to be the winner.”
In addition, he urges that digital currency is required to store value. As well as, become a medium of exchange and a unit of account. “I don’t think we have had the right prototype yet for crypto,” said Minerd.
Bitcoin price currently trades at over $29,000. | Source: BTC/USD price chart from TradingView.com
Investors Seem Hesitant To Buy Bitcoin Dips
The collapse of stablecoins, including TerraUSD (UST) and its fellow token Luna, has caused the market to suffer a severe blow.
Edward Moya, an analyst from the well-known forex and CFD trading platform of America, OANDA, has commented that Bitcoin prices are steadied even with the broad risk rally on Wall Street. He added;
It looks like most crypto traders are hesitant to buy the dip. Which most likely means that the bottom has not been made.
Moreover, Moya talked about the European Central Bank President Christine, who previously said digital currencies are “worth nothing.”
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“It is unlikely that any head of a central bank will endorse bitcoin or the other top coins. Especially as we are years away from a digital euro or dollar,” Moya stated. “It looks like bitcoin won’t really attract massive inflows. Until investors believe most major central banks are nearing the end of their tightening cycles.”
He speculated that giant coin prices will possibly remain choppy this summer.
Featured image from Pixabay and chart from TradingView.com