Guggenheim executives say Bitcoin will plummet to $8,000. more than 70% drop


key point

  • Guggenheim CIO Scott Minerd predicted Bitcoin at $8,000.
  • Fed rate hike and quantitative tightening affect BTC
  • Minerd said most cryptocurrencies are “garbage,” but Bitcoin and Ethereum will survive.

Scott Minerd, Chief Investment Officer (CIO) of Guggenheim Investments, the global wealth management and investment advisory arm of Guggenheim Partners, said that Bitcoin, the world’s largest cryptocurrency, has risen from current levels to $8,000. He said he could fall.

As of 10:24 PM EST, the price of 1 BTC is $29,210. data From CoinMarketCap (CMC). When it drops to $8,000, the price of Bitcoin drops by 72%.

“If it falls below 30,000, [dollars] 8,000 continuously [dollars] is the ultimate bottom, so I think there’s a lot more room for the downside, especially since the Fed is limited.” Minerd told CNBC’s Andrew Ross Sorkin. In an interview with “Squawk Box” at the 2022 Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland.

Minerd believes that the Fed’s proposed rate hike and quantitative tightening in monetary policy will also affect the price of Bitcoin.

Bitcoin has dropped to $30,000 several times over the past few days. The lowest price investors have seen this month was around $26,000. Nearly $500 billion was lost in the crypto space, including Terra’s $40 billion crash last month.

If Minerd’s prediction came true, Bitcoin would have fallen 88% from its all-time high of $69,000 in November 2021.

Interestingly, the CIO of Guggenheim believes most cryptocurrencies are “garbage”, arguing that Bitcoin and Ethereum will survive. “Most of these currencies are junk, not currencies,” he said.

Minerd likened the crypto boom to the dot-com bubble of the early 2000s, when the Internet was just introduced to the world.

“If we had been sitting in the Internet bubble, we would have talked about how Yahoo and America Online are great winners,” he added. “Everything else can’t say whether Amazon or Pets.com will be the winners.”

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