Against the backdrop of a rise in the policy rate and tighter monetary policy by the Fed, Bitcoin’s price could fall below $8,000. Scott Minerd, Guggenheim Partners’ chief investment officer, said this in an interview with CNBC.
“When you repeatedly breach the $30,000 level, $8,000 is the bottom. Therefore I believe we still have a lot of room to fall, especially given that the Fed is taking a hard line,” he said.
According to Minerd, most digital assets are “junk,” but Bitcoin and Ethereum will weather the crypto winter. At the same time, he does not believe the dominant player in the industry has yet been determined.
The Guggenheim’s chief investment officer also compared the crypto market to the dot-com bubble:
“If we were sitting here during the dot-com boom, we would say Yahoo and America Online were great winners. Of all the others we couldn’t predict who would win—Amazon or Pets.com.”
Minerd emphasised that the digital-asset industry has not yet arrived at the right design for a cryptocurrency. In his view, a currency should store value, be a medium of exchange and a unit of account.
“There is nothing like that; cryptocurrencies have not yet converged on a single basis,” he concluded.
Earlier, gold advocate and critic of the leading cryptocurrency Peter Schiff predicted a test of Bitcoin at the $8,000 level.
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