Scott Maynard, Chairman Investments and Global Chief Investment Officer, Guggenheim Partners, speaking at the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images
Bitcoin could fall further and fall to $ 8,000 from its current level, Scott Minard, Guggenheim’s chief investment officer, predicted on Monday.
That would represent a more than 70% drop from Monday morning’s price of just over $ 30,000.
“When you break below 30,000 [dollars] Consecutively, 8,000 [dollars] The bottom line is that I think we have a lot of room for negativity, especially with the Fed’s limitations, “Minard told CNBC’s Andrew Ross Sarkin in a” squawk box “interview at the World Economic Forum in Davos, Switzerland on Monday.
Minerd is referring to the US Federal Reserve raising interest rates and tightening monetary policy.
Since falling below $ 30,000 earlier this month, Bitcoin has struggled to rally significantly above that level. It regularly dropped below $ 30,000.
If Minerd’s predictions come true, it could hurt Bitcoin and the wider cryptocurrency market, which lost nearly $ 500 billion in value last month. Bitcoin has dropped about 24% in the last 30 days alone.
The CIO also said that most cryptocurrencies are “junk” but that bitcoin and etherium will survive.
“Most of these coins, they’re not coins, they’re junk,” he said.
Still, he said, “I don’t think we’ve seen any influential players in Crypto yet.”
Minerd compared the current situation to dotcom bubbles in the early 2000s.
“If we were sitting here on the Internet bubble, we would be talking about how Yahoo and America became great winners online,” he said. “Everything else, we couldn’t tell you that Amazon or Pets.com was going to be the winner.”
“I don’t think we still have the right prototype for crypto,” he said.
“None of these things pass, they don’t even pass on one basis,” he said. Minerd added that additional technological advances could change that and help create an ecosystem where people are accustomed to using cryptocurrencies for transactions and are confident that they will retain their value.
Maynard’s comments came after European Central Bank President Christine Lagarde said cryptocurrencies had “no value”.
Subscribe to CNBC on YouTube.