Bitcoin Will Continue To Deflate, According To Guggenheim Partners CIO

In a recent interview, Scott Minerd, Global Chief Investment Officer at Guggenheim Partners, predicted that Bitcoin would continue to deflate further.

From a trader’s perspective, it makes sense to take advantage of the opportunity to see higher prices in the near term, according to Minerd. However, as an investor, he thinks cryptocurrencies are under pressure “from a regulatory standpoint.”

“I think it’s going to deflate further, and I think we are going to have something akin to the collapse of the internet bubble to have a chance to sort out who are the winners and who are the losers here. I don’t think we’ve fully flushed out the system yet,” Minerd said.     

Furthermore, he noted that there was no actual institutional cash flow to back it up.

Bitcoin experienced a strong rally on Wednesday after the US Federal Reserve decided to increase 75 basis points. It hit a daily high at $24,110 after falling as much as 14% ahead of the central bank’s announcement.

Speaking of the recent relief rally, Minerd suggested that the Fed may not be as hawkish as it says. At the same time, the famous investor said that it is tough to argue that the US is not in a recession, countering the statement of Fed Chairman Jerome Powell.

Minerd predicts that the $8,000 level could become the “final bottom” of Bitcoin. However, it should be noted that investors have made some incorrect price predictions in the past.

At the time of writing, BTC is trading at $23,895.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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