Bitcoin Could Fall to $8,000
According to Chief Investment Officer Scott Minerd of financial firm Guggenheim, the Bitcoin price could fall to $8,000 from today’s prices, representing a drop of more than 70%. At the time of writing, Bitcoin is trading around $29,367.8.
In an interview with CNBC during the World Economic Forum in Davos, Switzerland on May 23, Mr. Minerd said that when breaking the $30,000 mark, $8,000 is the final bottom. Therefore, he thinks that Bitcoin has a lot of room to decline, especially when the US Federal Reserve (FED) is implementing measures to deal with inflation such as tightening monetary policy and raising interest rates.
Since falling below the $30,000 mark at the beginning of the month, Bitcoin has failed to bounce above this level and has frequently dipped.
If Mr. Minerd’s forecast turns out to be true, it will carve pain into the cryptocurrency market as a whole, which has flown around $500 billion in value over the past month. In the last 30 days alone, Bitcoin is down about 24%.
He calls most cryptocurrencies “junk,” but Bitcoin and Ethereum will survive. Even so, he doesn’t think “we have seen the crypto market ruler.”
The director compared the current situation to the dotcom bubble of the early 2000s. At that time, everyone was talking about Yahoo and American Online being the two great winners, but in the end Amazon was the winner.
According to him, technological advancements can change cryptocurrencies, helping to create an ecosystem where people are used to using cryptocurrencies to transact and are confident that they are holding value.
Minerd’s comments come after European Central Bank President Christine Lagarde said cryptocurrencies are “worthless” and should be regulated.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
