Hearing more negative speculation would be unpleasant for the investors as the recent bloodbath’s catastrophic effects already slowed down crypto markets. However, an expert forecast that Bitcoin would fall far below.
Scott Minerd is the Chief Officer at Guggenheim Partners. This global advisory and investment firm manages $325 billion. He speculates that Bitcoin could fall to $8,000. He is the same man who once said in December that “Bitcoin price should be $400,000.”
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The speculation refers to a nearly 70% drop from today’s price of BTC, fluctuating around $30,000.
BTC may fall as the Fed becomes more restrictive
Speaking with the CNBC’s Andrew Ross Sorkin in an interview held on Monday at World Economic Forum, Switzerland, he said;
Breaking below 30,000 [dollars] consistently, 8,000 [dollars]This is the absolute bottom. I feel there’s more to be had, especially given the Fed’s restrictive policies.
Minerd emphasized the link between BTC prices and Fed regulations and tightening policy.
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.”
He said that the current situation is similar to the 2000s dotcom bubble.
“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.”
Additionally, he argues for digital currency to be stored value. It can also be used as a currency and unit of account. “I don’t think we have had the right prototype yet for crypto,” said Minerd.
Bitcoin Dips are a popular investment option for investors
The market has been severely affected by the crash of stablecoins like TerraUSD (UST), as well as Luna token.
Edward Moya is an analyst at OANDA (the well-respected forex and CFD trading platform in America) who commented on the fact that Bitcoin prices have remained steady despite the large risk increase seen on Wall Street. He said:
Most crypto traders seem to be hesitant about buying the dip. It is most likely that this means the bottom hasn’t been reached.
Moreover, Moya talked about the European Central Bank President Christine, who previously said digital currencies are “worth nothing.”
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“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 predicted that large coin prices could be choppy in the summer.
Featured image by Pixabay, chart from TradingView.com