- Currently trading around $30,000, Bitcoin (BTC-USD) remains the top cryptocurrency by market capitalization
- However, Guggenheim’s Scott Minerd has provided an exceptionally bearish take on BTC
- According to Minerd, Bitcoin could drop to as low as $8,000
Bitcoin (BTC-USD) is one of the few cryptos that have received love from institutional investors. However, today, one of the most bearish Bitcoin price predictions we’ve seen in some time has come, courtesy of Guggenheim. The firm’s chief investment officer Scott Minerd recently predicted in an interview with CNBC that Bitcoin could plunge to $8,000. This represents approximately 70% downside.
Of course, Guggenheim isn’t the only bear on cryptocurrencies such as Bitcoin on Wall Street. However, the rather stark shift in view Guggenheim has made has taken some investors by surprise.
Let’s dive in what’s driving this view.
Are These Bearish Bitcoin Price Predictions Realistic?
Any sort of analyst call for a 70% potential drop is noteworthy. Perhaps raising eyebrows was the intent Minerd’s new Bitcoin price prediction. Or perhaps there is some sincere concern underlying this commentary.
Guggenheim suggests there are a confluence of factors that led to this call. Specifically, from a technical perspective, Minerd notes that there’s no real resistance between the $30,000 level and the $8,000 level. With the Federal Reserve hiking interest rates and monetary policy tightening, it’s going to be tough sledding for risk assets. For those that are among the most difficult to value, like BTC, this selloff may be more pronounced.
Now, it’s important to note that Minerd sees Bitcoin surviving what he thinks is impending wreckage for the crypto sector. Calling other cryptos “junk,” he did note that Bitcoin is likely to remain viable. However, he pointed to the idea that “the dominant player” in crypto may not even exist right now, seeming to imply Bitcoin’s status as the largest and most well-known cryptocurrency may one day come under siege.
Time will ultimately be the judge of this call. However, it’s certainly a bold take, and one investors may want to consider in this very bearish market.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.