After the value of BTC dipped below USD 30,000, it has struggled to rise back above that level. Minerd thinks that the price had much more room to go down, especially after the Fed implemented measures to control inflation.
Scott Minerd, chief investment officer (CIO) of Guggenheim Partners, recently spoke about the future of Bitcoin (BTC). The stock market investor said the price could collapse further and drop to USD 8,000.
According to CoinMarketCap, there could be a drop of over 70% from the current price, which is USD 29,154. After dipping below USD 30,000 in early May, the value of Bitcoin has struggled to rise back above that level.
If the prediction made by Scott Minerd came true, it would cause further distress to Bitcoin investors and the overall crypto market. His comments came after Christine Lagarde, the president of the European Central Bank, said cryptocurrencies were worthless and needed regulation.
Minerd Predicts the BTC Price Will Bottom Out at USD 8,000
Scott Minerd told the CNBC news channel that USD 8,000 is consistently the ultimate bottom line when breaking below USD 30,000. He said he thought the price had much more room for the downside. That is particularly possible now that the US Federal Reserve (Fed) implements restrictive economic measures to control inflation.
He added that Ether (ETH) and Bitcoin would lead the crypto assets that will survive the market collapse. He pointed out that there has not yet been a dominant player in the cryptocurrency industry. The CIO of Guggenheim Partners also stated that he considers most cryptocurrencies garbage or junk.
Minerd Compares the Current Situation to the Dotcom Bubble
In addition to the above, Scott Minerd compared the current situation of cryptocurrencies to the dotcom bubble of the early 2000s.
He stated that people would say that Yahoo and America Online were the big winners if they were sitting in the Internet bubble.
He also expressed that he did not think they had an appropriate prototype for creating cryptocurrencies. He explained that those currencies had to store value, be a medium of exchange and serve as a unit of account. He pointed out that those things do not even happen at a basic level.
Minerd thinks that additional technological advances could contribute to changing that situation. Besides, it would help create an ecosystem where people use cryptocurrencies for transactions and trust they will retain their value.
Bitcoin is trading at around USD 29,149 and has accumulated a 2.8% loss over the last 24 hours. While its daily trading volume is above USD 27.71 billion, its market capitalization is about USD 558.93 billion, according to CoinGecko.
Although Bitcoin is facing the collapse of the crypto market, it has historically recovered from its worst all-time lows. However, the CIO of Guggenheim Partners recommends looking for all types of information about crypto assets before investing in them. It is a matter of time until the price of BTC bottoms out before rebounding above USD 30,000.
By Alexander Salazar
