Bitcoin Price Could Fall To $8,000, Says Guggenheim CIO
May 24 2022 - 4:00PM
NEWSBTC
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.” Related Reading |
XRP Has Broken Below Its Long-Standing Support, What’s Next? 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. 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.” Related Reading | Solana (SOL)
Could Register An Upswing, Thanks To This Pattern “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
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