Scott Minerd, Guggenheim’s Chief Information Officer, Said Bitcoin Could Fall to $8000

Written by C, Fiona

Last updated: 2022-05-25

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This forecast is related to the expected additional interest rate hike in the United States to control inflation, which is rising at a rate not seen in 40 years. Bitcoin has been in a continuous decline since the end of last year. A few weeks ago, it traded below $31000 for the first time since July 2021. Since then, the digital asset has gradually broken the key support point. The asset is currently trading at $29000, down 57% from its all-time high of $69000. Although there is great competition in the market because buyers are trying to suppress sellers, Scott Minerd, Guggenheim’s chief investment officer, predicts that Bitcoin will fall below $8000.

The Sign of Decline

This prediction alone creates fear, as investors may sell at this time to avoid further losses. In an interview at the world economic forum in Davos, Switzerland, minerd revealed that prices have shown more signs of continuous decline.

“When you break through 30000 [dollars] in a row, 8000 [dollars] is the final bottom, so I think we still have a lot of downside space, especially under the restrictions of the Federal Reserve,” he said.

This forecast is related to the expected additional interest rate hike in the United States to control inflation, which is rising at a rate not seen in 40 years. In the past month, about $500 billion has been erased from the cryptocurrency market. This means that the further decline of Bitcoin price may be a huge blow. Bitcoin alone accounts for more than 40% of the total market value, so its pullback may affect the whole ecosystem.

Cryptocurrencies are Rubbish

He further revealed that most cryptocurrencies on the market are rubbish. However, Bitcoin and Ethereum will survive. He also said that he had not seen the leader of the cryptocurrency market, and compared the current situation with the Internet companies in the 2000s.

“If we were sitting here in the Internet foam, we would talk about how Yahoo and AOL became big winners,” Minard said. “Everything else, we can’t tell you whether Amazon or pets.com will be a winner,” he added. “I don’t think we have the right prototype of cryptocurrency yet.

In the interview, he questioned the monetary status of most cryptocurrencies, saying that money needs to become a unit of account, a medium of exchange, and a store of value. According to him, none of these encrypted currencies meet the basic requirements. However, things may change in the future. He believes that technological advances can open the way for creating an atmosphere in which people are used to trading with them. Just recently, Christine Lagarde, President of the European Central Bank, labeled cryptocurrency worthless and called for regulations to control its use.