Under the crazy "water collection" of the Federal Reserve, the cryptocurrency market may be even worse, which has evaporated $500 billion in the past month. While investors are still worried about bitcoin repeatedly breaking the $30000 mark, executives of the US asset management giant gave a more frightening prediction.
Scott minerd, Guggenheim's chief investment officer, said on Monday that bitcoin was expected to fall further to $8000, CNBC reported. In other words, bitcoin will fall by more than 70% from $30000 earlier on Monday.
Minerd said in an interview with CNBC at the world economic forum in Davos, Switzerland on Monday:
When bitcoin continues to fall below $30000, $8000 is the final bottom. So I think there is more downside space, especially after the Federal Reserve takes restrictive measures (raising interest rates & amp; tightening monetary policy).
If the next market trend of bitcoin is really as minerd predicted, it will bring greater pain to the cryptocurrency market. In the past month, the cryptocurrency market has evaporated about $500 billion, of which bitcoin has fallen by about 24%.
Minerd also believes that most cryptocurrencies are "junk". In contrast, bitcoin and Ethereum will continue to exist, but he added:
I don't think we've seen a leader in encryption yet.
He further pointed out that money needs to have storage value and be able to become a measure of value and a means of circulation:
But none of them have acquired these functions.
He added that additional technological advances could change that and help create an ecosystem where people get used to trading with cryptocurrencies and believe they can preserve their value.
Minerd also compared the current situation with the Internet foam in the early 2000s:
If we sit in the Internet foam, we will talk about how Yahoo and AOL have become the biggest winners... We can't tell you about Amazon or pets Whether com will be a winner.