After Predicting $400K Bitcoin, Guggenheim Now Sees a Crash to $8K
The company’s CIO has had little success with his previous BTC predictions, but the latest one sees the asset falling another 70%.
With the price of bitcoin currently below $30,000, Scott Minerd, the chief investment officer of global investment giant Guggenheim Partners, believes BTC’s value could further dip to $8,000.
Bitcoin Price Could Bottom at $8,000
Minerd made the bearish prediction on Monday (May 23, 2022), during an interview on CNBC’s Squawk Box at the World Economic Forum (WEF) annual meeting in Davos, Switzerland.
According to the Guggenheim executive, bitcoin’s constant slip below the $30,000 level could cause the cryptocurrency to fall to $8,000, which signals a fall of more than 70%. Minerd 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”.
According to a recent report, bitcoin has continued to close the weekly candle in red for eight consecutive weeks. The cryptocurrency’s price decline has led to the BTC Fear and Greed Index to remain at “extreme fear.”
Meanwhile, this is not the first time the Guggenheim CIO has predicted bitcoin’s price dip. Back in July 2021, Minerd said that BTC could plunge to $15,000. In April of the same year, the executive predicted bitcoin’s price could correct to $20,000, at the time when the asset was at $65,000, before retracing to around $55,000.
However, Minerd earlier made bullish predictions stating that bitcoin could reach between $400,000 and $600,000. It’s worth noting that he has seen little-to-no success with his previous forecasts.
MicroStrategy CEO and founder Michael Saylor, on the other hand, continues to make bold predictions for bitcoin despite the crypto price descent. According to Saylor, who has remained unfazed in the ongoing cryptocurrency market bloodbath, he expects BTC to “go into the millions.”
No Dominant Player in Crypto Yet
Despite the Guggenheim CIO’s recent bearish BTC price prediction, the executive said that only bitcoin and ethereum, two of the largest cryptocurrencies by market capitalization, will survive long term. Minerd noted that most crypto assets are “junk” rather than currencies.
Even with BTC and ETH dominating the market, the CIO believes that crypto is yet to have a dominant player. Minerd went on to add that there is no “right prototype yet for crypto.”
According to the executive, the ideal cryptocurrency will need to be a medium of exchange, a store of value, and a unit of account. However, Minerd believes most of the existing crypto tokens fail to pass any of the criteria.