Despite a robust present on Wall Street on Monday, the world’s largest cryptocurrency Bitcoin (BTC) failed to maintain the $30,000 degree. As of press time, Bitcoin is buying and selling 2.82% down at a value of $29,226 with a market cap of $557 billion.
On Monday, May 23, Guggenheim Chief Investment Officer Scott Minerd spoke to CNBC including that the Bitcoin value may drop additional to $8,000 from right here. This means, there’s a risk of greater than 70% correction from the present ranges. During his interview with CNBC on the World Economic Forum in Davos, Switzerland, Miner stated:
“When you break below 30,000 [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive”.
Note that final yr in July 2021, Minerd had additionally predicted BTC to contact $15,000 on the backside of the sell-off. However, Bitcoin proceeded on hitting its all-time excessive of $69,000 later that yr.
The Bitcoin value has been heading decrease regardless of a robust present on Wall Street on Monday. On-chain information supplier Santiment explains:
Bitcoin dropped -4.0% Monday after a strong day from the #SP500. These two have fluctuated tightly all through 2022, and this separation could also be attributable to $BTC resistance at $30k. If #equities proceed upward, although, anticipate good issues for crypto.
Scott Minerd: Most of the Cryptocurrencies Are Junk
Commenting on the state of the broader crypto market, Guggenheim CIO Scott Miner stated that a lot of the cryptocurrencies are junk. “I don’t think we’ve seen the dominant player in crypto yet,” he added.
This month, the crypto market has witnessed the foremost collapse of the Terra ecosystem in a matter of per week eroding greater than $40 billion price of buyers’ wealth from the market. Moreover, a number of of the highest ten cryptocurrencies have corrected anyplace between 50-60% this yr alone.
Minerd added that any forex ought to both go the check of being both a medium of change, retailer of worth, or unit of account. Neither of the cryptocurrencies reveals these traits, stated Minerd. “I don’t think we have had the right prototype yet for crypto. None of these things pass, they don’t even pass on one basis,” he added.
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