Scott Minerd, Chairman of Investment and Global Chief Investment Officer of Guggenheim Partners, speaks at the Milken Institute Global Conference in Beverly Hills, CA, on May 2, 2022.

Patrick T. Fallon | AFP | Getty Images

Bitcoin could fall even more and fall to $ 8,000 from its current level, Guggenheim chief investment officer Scott Minerd predicted on Monday.

It will drop more than 70% to a price of just over $ 30,000 on Monday morning.

“If you break below 30 thousand [dollars] constantly, 8000 [dollars] “It’s the bottom line, so I think we have a lot more room for decline, especially with the Fed limiting,” Minerd told Andrew Ross Ross Sorkin of CNBC in an interview with Squawk Box at the World Economic Forum in Davos. Switzerland on Monday.

Minerd is referring to an increase in US Federal Reserve interest rates and a tightening of monetary policy.

Since falling below $ 30,000 earlier this month, Bitcoin has struggled to rise well above that level. It regularly dropped below $ 30,000.

If Minerd’s prediction comes true, it will deal additional blows to bitcoins and the wider cryptocurrency market, which has lost about $ 500 billion over the past month. In the last 30 days alone, bitcoin has fallen by about 24%.

The CIO also said that most cryptocurrencies are “garbage”, but bitcoin and etherium will survive.

“Most of these currencies are not currency, they are rubbish,” he said.

Despite this, he said, “I don’t think we’ve seen a dominant player in the crypt yet.”

Minerd likened the current situation to a dot-com bubble of the early 2000s.

“If we were sitting here in an internet bubble, we would be talking about how Yahoo and America Online were big winners,” he said. “Everything else, we couldn’t tell you whether Amazon or would be the winner.”

“I don’t think we have yet had the right prototype for the crypt,” he said, saying the currency should retain value, be a medium of exchange and a unit of account.

“None of these things happen, they don’t even happen on one basis,” he said. Minerd added that additional technological advances could change that and help create an ecosystem in which people get used to using cryptocurrencies for transactions and are confident that they will retain their value.

Minerd’s comments come after European Central Bank President Christine Lagarde said cryptocurrencies were “worthless.”

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