- Currently trading around $30,000, Bitcoin (BTC-USD) remains the top cryptocurrency by market capitalization
- However, Guggenheim’s Scott Minerd provided an exceptionally bearish view of BTC.
- Bitcoin Could Fall to $8,000, Minerd Says
Bitcoin (BTC-USD) is one of the few cryptos that has received love from institutional investors. However, today one of the most bearish Bitcoin price predictions we’ve seen in quite some time arrived, courtesy of Guggenheim. The company’s chief investment officer, Scott Minerd, recently predicted in an interview with CNBC that Bitcoin could plunge to $8,000. That’s about a 70% drop.
Of course, Guggenheim isn’t the only bear on cryptocurrencies such as Bitcoin on Wall Street. However, Guggenheim’s rather abrupt change of sight took some investors by surprise.
Let’s dive into what drives this view.
Are these bearish Bitcoin price predictions realistic?
Any sort of analyst call for a potential 70% drop is noteworthy. Perhaps raising eyebrows was the intent of Minerd’s new Bitcoin price prediction. Or maybe there is a sincere concern underlying that comment.
Guggenheim suggests that there is a confluence of factors that led to this call. Specifically, from a technical perspective, Minerd notes that there is no real resistance between the $30,000 level and the $8,000 level. With the Federal Reserve raising interest rates and tightening monetary policy, it will be difficult to sled for risky assets. For those that are among the hardest to value, like BTC, this selloff may be more pronounced.
Now, it is important to note that Minerd sees Bitcoin surviving what it believes to be an impending doom for the crypto sector. Calling other cryptos “junk,” he noted that Bitcoin is likely to remain viable. However, he pointed to the idea that the “dominant player” in crypto may not even currently exist, which seems to imply that Bitcoin’s status as the largest and most well-known cryptocurrency could one day be besieged.
Time will ultimately be the judge of this appeal. However, it is certainly a bold move, and an investor may want to consider it in this very bearish market.
As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.