Scott Minerd, Chairman of Investments and Global Chief Investment Officer of Guggenheimners, speaks at the Milken Institute Global Conference in Beverly Hills, California on May 2, 2022.
Patrick T. Fallon | AFP | Getty Images
Bitcoin could drop further and fall to $8,000 from current levels, Guggenheim chief investment officer Scott Minerd predicted on Monday.
This would mean a drop of more than 70% from Monday morning’s price of just over $30,000.
“When you fall below 30,000 [dollars] constantly, 8000 [dollars] is the final bottom, so I think we have a lot more room to go lower, especially with Fed restrictions,” Minerd told CNBC correspondent Andrew Ross Sorkin in an interview with The Squawk Box at the World Economic Forum in Davos, Switzerland. , Monday .
Minerd refers to the rise in interest rates and the tightening of monetary policy by the US Federal Reserve.
After falling below $30,000 earlier this month, Bitcoin has struggled to rise significantly above that level. It regularly dropped below $30,000.
If Minerd’s predictions come true, it will hurt Bitcoin and the wider crypto market, which has shrunk by about $500 billion in value over the past month. Bitcoin is down about 24% in the last 30 days alone.
The CIO also said that most cryptocurrencies are “junk”, but bitcoin and ethereum will survive.
“Most of these currencies are not currencies, but garbage,” he said.
However, according to him, “I don’t think we have yet seen a dominant crypto player. »
Minerd compared the current situation to the dot-com bubble of the early 2000s.
“If we were sitting here in the dot-com bubble, we would be talking about Yahoo and America Online being the big winners,” he said. “Something else, we couldn’t tell you who would be the winner – Amazon or Pets.com. »
“I don’t think we have a proper prototype for a cryptocurrency yet,” he said, arguing that money should store value, be a medium of exchange, and be a unit of account.
“None of these things pass, they don’t pass even on one sign,” he said. Minerd added that additional technological advances could change that and help create an ecosystem where people get used to using cryptocurrencies for transactions and are confident that they will retain their value.
Meinerd’s comments came after European Central Bank President Christine Lagarde said cryptocurrencies were “worthless.”
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