Bitcoin Price May Drop to $8,000, Guggenheim CIO Says


It would be disconcerting for investors to hear more negative speculation as the catastrophic effects of the recent carnage have already slowed down crypto markets. But unfortunately, an expert predicted that Bitcoin would go way down.

Scott Minerd, Chief Officer at Guggenheim Partners, a global investment and consulting firm that manages $325 billion under his management, speculated that Bitcoin price could drop to $8,000. He is the same man who once said in December that “the price of bitcoin should be $400,000.”

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The speculation points to a nearly 70% drop from the current price of BTC, which hovers around $30,000.

BTC Could Fall If The Fed Is Restrictive

Speaking to Andrew Ross Sorkin of the CNBC in an interview held Monday at the World Economic Forum, Switzerland, he said;

When you are under 30,000 . breaks [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room at the bottom, especially now that the Fed is restrictive.

Minerd emphasized the relationship between the BTC price and the Fed regulation and tightening policy.

After the previous high of November 10, when the price of BTC reached $69,044, it fell by about 58% of its value.

“Most of these currencies, they’re not currencies, they’re junk,” he added, saying, “I don’t think we’ve seen the dominant player in crypto yet.”

Comparing the current situation to the dotcom bubble of the early 2000s, he said;

“If we were here in the internet bubble, we’d be talking about how Yahoo and America Online were the big winners,” adding, “Everything else, we couldn’t tell you if Amazon or Pets.com was the winner.”

In addition, he insists that digital currency is necessary to store value. As well as, become a medium of exchange and a unit of account. “I don’t think we have the right prototype for crypto yet,” Minerd said.

Bitcoin price is currently trading at over $29,000. † Source: BTC/USD price chart of TradingView.com

Investors Seem Hesitant To Buy Bitcoin Dips

The collapse of stablecoins, including TerraUSD (UST) and its fellow token Luna, has left the market in a serious blow.

Edward Moya, an analyst with America’s well-known forex and CFD trading platform, OANDA, has noted that Bitcoin prices are stable even with the wide-ranging risk rally on Wall Street. He added;

It seems that most crypto traders are hesitant to buy the dip. Which most likely means the bottom wasn’t made.

In addition, Moya talked about European Central Bank president Christine, who previously said that digital currencies are “worth nothing”.

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“It is unlikely that a head of a central bank will approve bitcoin or the other top currencies. Especially because we are years away from a digital euro or dollar,” says Moya. “It looks like bitcoin won’t really attract massive inflows. Until investors think most major central banks are nearing the end of their tightening cycles.”

He speculated that the prices of giant coins may remain choppy this summer.

Featured image from Pixabay and chart from TradingView.com

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