Bitcoin (EXANTE: Bitcoin) can lose as much as 70% and crash down to $8,000 as the largest cryptocurrency by market capitalization still remains in the downtrend.
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In an interview with CNBC, Guggenheim Chief Investment Officer Scott Minerd said the cryptocurrency is still vulnerable to further decline as there’s still “a lot more room to the downside.” He also says the Fed’s policy doesn’t play into the hands of bitcoin, referring to the Fed’s hiking of interest rates:
“When you break below [$]30,000 consistently, [$]8,000 is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive.”
Speaking about altcoins, Minerd called them “junk,” noting though that the market hasn’t seen the “dominant player in crypto yet.”
“If we were sitting here in the internet bubble, we would be talking about how Yahoo and America Online were the great winners. Everything else, we couldn’t tell you if Amazon or Pets.com was going to be the winner.”
Back in 2020, Minerd said that bitcoin was “severely undervalued,” adding that the firm’s fundamental work shows that “bitcoin should be worth about $400,000.” Guggenheim Investments analysts reached this conclusion based on two factors: the limited supply of bitcoin and its value in relation to gold.
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