As the price of Bitcoin drops by 4% on Monday, Guggenheim believes the price can go as low as $8000.
Despite a strong showing on Wall Street on Monday, Bitcoin (BTC), the world’s largest cryptocurrency, failed to hold the $30,000 level. Bitcoin is currently trading 2.82 percent lower at $29,226 with a market cap of $557 billion as of press time.
Guggenheim Chief Investment Officer Scott Minerd told CNBC on Monday, May 23, that the Bitcoin price could fall further to $8,000 from here. This means that there is a chance of a more than 70% correction from current levels. Miner told CNBC during an interview at the World Economic Forum in Davos, Switzerland:
“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”.
Minerd predicted BTC would reach $15,000 at the bottom of the sell-off last year in July 2021. However, Bitcoin went on to reach an all-time high of $69,000 later that year.
Despite a strong showing on Wall Street on Monday, the Bitcoin price has been falling. Santiment, an on-chain data provider, explains:
“Bitcoin dropped -4.0% Monday after a solid day from the #SP500. These two have fluctuated tightly throughout 2022, and this separation may be caused by $BTC resistance at $30k. If #equities continue upward, though, expect good things for crypto.”
Guggenheim CIO Scott Miner commented on the state of the broader crypto market, claiming that the majority of cryptocurrencies are worthless. “I don’t believe we’ve seen the dominant player in cryptocurrency yet,” he added.
This month, the crypto market witnessed the major collapse of the Terra ecosystem in a matter of a week, wiping out more than $40 billion in investor wealth. Furthermore, several of the top ten cryptocurrencies have corrected by 50-60% this year alone.
Minerd went on to say that any currency must pass the test of being a medium of exchange, store of value, or unit of account. According to Minerd, neither of the cryptocurrencies exhibits these characteristics. “I don’t think we’ve had the right crypto prototype yet.” “None of these things pass, not even on a single basis,” he added.