Bitcoin could plunge as low as $8,000 from its current levels, Guggenheim Chief Investment Officer Scott Minerd predicted Monday.
If the price plunge takes place, it would represent a more than 70% drop to Monday morning’s price of just over $30,000.
“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,” Minerd told CNBC’s Andrew Ross Sorkin in a “Squawk Box” interview at the World Economic Forum in Davos, Switzerland on Monday.
Minerd is referring to the U.S. Federal Reserve’s raising interest rates and tightening of monetary policy.
After plummeting below $30,000 earlier this month, bitcoin hasn’t be able to recover above that level. It has regularly slipped below $30,000.
If Minerd’s forecast comes true, it would add more damage to bitcoin and the cryptocurrency market which has shed about $500 billion of value in the past month. Bitcoin is down around 24% in the last 30 days alone.
