The chief investment officer of Guggenheim Partners, Scott Minerd, predicts a crypto washout similar to the internet bubble.
He forewarned, “There’s more shoe to drop.”
Nevertheless, despite the failure of cryptocurrency exchange FTX, the executive is optimistic about the future of the crypto business.
Scott Minerd of Guggenheim Shares His Crypto Outlook
Following the collapse of the cryptocurrency exchange in FTX, Scott Minerd, the global chief investment officer (CIO) of Guggenheim Partners, spoke with Bloomberg last week to discuss his views on the future of cryptocurrencies.
Given the consequences from FTX, the ensuing contagion, and the current sell-offs in the crypto markets, he was questioned about his faith in the future of bitcoin and other cryptocurrencies.
The CIO said, “A year ago we were talking about cryptocurrency, and there were about 19,000 coins, to which my remark was, “This is largely rubbish,”” before giving more details. He foresaw:
According to Minerd, Guggenheim purchased some bitcoin at a cost of $20,000, which the investment management company later sold for a cost of $40,000.
The Guggenheim executive stressed: “I can’t tell you where it is,” even as he forewarned, “There’s more shoe to drop.” Minerd clarified: In early 2021, Minerd had high hopes for the price of bitcoin.
He forecast that the cryptocurrency’s fair value would rise to roughly $600,000 at that time.
The Guggenheim executive, however, gradually lost his optimism.
He suggested that the price of Bitcoin may drop to $8,000 in May and advised investors to sell it short.