Guggenheim’s chief investment officer Scott Minerd is predicting that bitcoin, the world’s number one digital currency by market cap, could fall to even lower levels in the coming weeks.
Scott Minerd Offers a Case of Gloom and Doom for BTC
During a recent interview, Minerd claimed that bitcoin has not bottomed out yet, despite losing approximately 50 percent of its value since mid-April. He says that he is confident the price of BTC could drop to about $15,000 at some point before things ultimately start to improve.
In the interview, Minerd said:
The real bottom, when you look at the technicals, $10,000 would be the real bottom, you know, that is probably a little extreme, so I would say $15,000.
Bitcoin has been on a downward spiral over the past two months. The virtual currency initially struck a new all-time high in April of approximately $64,000 per unit, though the asset has since hit a real snag in its price progression. Things took a nasty turn when Elon Musk – the CEO of Tesla – announced that his company would not be accepting bitcoin payments for goods and services after all, citing concerns with the BTC mining process as the reason.
Bitcoin, which was trading in the mid-$50,000 range at that time, was immediately hindered and fell into the high $40,000 range, though the negativity was not quite over. Musk then hinted that he was potentially looking to part with is personal BTC stash, which got everyone contemplating on Twitter. This led BTC to experience further drops. After all that, bitcoin was only half the asset it was two months ago.
According to Minerd, one of the big reasons why bitcoin has been doing so well over the past year is because banks were not in great shape. The financial institutions of the world had been hit hard by the coronavirus pandemic, and this gave crypto the door it needed to step in and take over where fiat had failed. However, now that COVID cases are decreasing regularly, he says banks are beginning to make a comeback, and governments are now rolling back some of the financial protections and programs they initiated to keep economies afloat.
Maybe Avoid Investing for a While…
Either way, while Minerd is confident bitcoin could come back at some point in the future, he is advising all his clients to steer clear of the currency for a while, as he is quite certain things will take another negative turn. He stated:
I do not think people need to be anxious to be putting money in bitcoin right now.
At the time of writing, bitcoin is trading for about $31,900 per unit, which is a slight improvement over the $29,000 it fell to during today’s early morning hours, though it is still considerably less than where it has been even during the previous three weeks.