Crypto news

Guggenheim Partners expects bitcoin to fall below $8,000

Guggenheim Partners expects bitcoin to fall below $8,000

The  price of bitcoin could fall below $8,000 amid a key rate hike and a tightening of the Federal Reserve’s monetary policy. Guggenheim Partners investment director Scott Minerd said in an interview with CNBC.

“When you consistently break through the $30,000 level, $8,000 is the ultimate bottom. So I think we still have a lot of room to go down, especially with the Fed acting tough,” he said.

According to Minerd, most digital assets are “junk,” but Bitcoin and Ethereum will survive the cryptozyma.

However, he does not believe that the dominant player in the industry has already been determined.

The Guggenheim investment director also compared the situation in the crypto market to the dot-com bubble:

“If we were sitting here in the days of the Internet bubble, we’d be talking about Yahoo and America Online being the great winners. About all the others, we wouldn’t be able to make predictions about who would win – Amazon or Pets.com.”

Minerd stressed that the digital asset industry hasn’t yet arrived at a proper cryptocurrency design. In his view, a currency should hold value, be a medium of exchange and a unit of account.

“There is nothing like that, they [cryptocurrencies] haven’t even come to a unified basis,” he concluded.

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