Bitcoin ‘Crash’ Risks Taking Its Price Down To $10,000, Minerd Says
The Guggenheim Investments chairman said in an interview with CNBC that he wouldn’t be in a hurry to buy the cryptocurrency.
There’s no reason for investors to buy Bitcoin at the moment, according to Guggenheim Investments Chairman Scott Minerd.
The world’s biggest cryptocurrency is in the midst of a crash that may take it to as low as $10,000, Minerd said in an interview with CNBC.
“When we look at the history of crypto and we look at where we are, I mean, I really do believe this is probably a crash, and you know a crash would mean we’d be down 70-80% which, let’s just say that’s between 10 and 15 thousand,” he said.
Bitcoin is currently trading at around $33,300, about 50% below the record highs above $60,000 that it hit just three months earlier. The tumble in prices has been driven by a slew of factors, including increasing regulatory scrutiny from China to the U.K., the environmental impact of crypto mining and concerns that the asset in general holds no inherent value. Its most outspoken evangelists and skeptics are no closer to a consensus on the outlook.
“Put it this way, I wouldn’t be in a hurry to buy Bitcoin and I don’t see any reason to own it right now,” Minerd told CNBC. “If you’re going to be a speculator, speculate that it’s heading lower.”
Minerd wasn’t always a Bitcoin bear. Back in December, he told Bloomberg News that it should be worth “about $400,000.”
But in May, Minerd tweeted that “crypto has proven to be Tulipmania,” referring to the 17th century speculative bubble involving prices for tulip bulbs.
And late last month he had another ominous prediction: “Look for more declines in crypto as Bitcoin breaks through support,” he tweeted. “Next likely support level is $20,000.”
– Bloomberg