Bitcoin could fall to $8,000, a more than 70% plunge, Guggenheim's Minerd says

1 month ago
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Scott Minerd, Chairman Investments and Global Chief Investment Officer, Guggenheim Partners, speaks during the Milken Institute Global Conference successful Beverly Hills, California, connected May 2, 2022.

Patrick T. Fallon | AFP | Getty Images

Bitcoin could driblet further and autumn to $8,000 from its existent levels, Guggenheim Chief Investment Officer Scott Minerd predicted Monday.

That would correspond a much than 70% driblet to Monday morning's terms of conscionable implicit $30,000.

"When you interruption beneath 30,000 [dollars] consistently, 8,000 [dollars] is the eventual bottom, truthful I deliberation we person a batch much country to the downside, particularly with the Fed being restrictive," Minerd told CNBC's Andrew Ross Sorkin successful a "Squawk Box" interrogation astatine the World Economic Forum successful Davos, Switzerland connected Monday.

Minerd is referring to the U.S. Federal Reserve's hiking of involvement rates and tightening of monetary policy.

Since falling beneath $30,000 earlier this month, bitcoin has struggled to rally substantially supra that level. It has regularly dipped beneath $30,000.

If Minerd's forecast comes true, it would inflict further symptom connected bitcoin and the broader cryptocurrency marketplace which has seen astir $500 cardinal wiped disconnected its worth successful the past month. Bitcoin is down astir 24% successful the past 30 days alone.

The CIO besides said that astir crypto is "junk" but that bitcoin and ethereum volition survive.

"Most of these currencies, they're not currencies, they're junk," helium said.

Even so, helium said, "I don't deliberation we've seen the ascendant subordinate successful crypto yet."

Minerd compared the existent concern to the dotcom bubble of the aboriginal 2000s.

"If we were sitting present successful the net bubble, we would beryllium talking astir however Yahoo and America Online were the large winners," helium said. "Everything else, we couldn't archer you if Amazon oregon Pets.com was going to beryllium the winner."

"I don't deliberation we person had the close prototype yet for crypto," helium said, saying that currency needs to store value, beryllium a mean of speech and portion of account.

"None of these things pass, they don't adjacent walk connected 1 basis," helium said. Minerd added that further technological advances could alteration that and assistance make an ecosystem wherever radical get utilized to utilizing cryptocurrencies for transactions and are assured they volition clasp their value.

Minerd's comments travel aft European Central Bank President Christine Lagarde said cryptocurrencies are "worth nothing."

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