At this moment takes place the Davos Economic Forum, the high mass of the world economy. On the occasion of this event, the investment director of Guggenheim Partners, Scott Minerd, spoke about the Bitcoin, raising the possibility of a drop below 10,000 dollars. And revealed everything he thought about the cryptocurrency sector.
Technical analysis: Bitcoin could drop below $10,000
According to Scott Minerd, the fact that Bitcoin regularly crosses below the $30,000 support could ultimately lead to a more violent drop below 10,000 dollars and up to 8000 dollars.
The figure of 8000 dollars is not anecdotal, it is the historic low that Bitcoin had known since July 2019. Even if this investment director is cautious about Bitcoin, his look deserves to have a lot of hindsight.
And when we zoom out of the bitcoin curve, we realize that the current price corresponds to a sudden price surge in October 2020. Today, investors are not immune to a violent correction. Especially since investment funds that have entered cryptocurrencies tend with inflation to separate from their most exposed assets (and therefore cryptos).
Regulation of this “junk”
Nevertheless, Scott Minerd’s remarks must be put in context. This CIO (for Chief of Investment Officer) is particularly sensitive to cryptocurrencies, which he considers in his speech to be “bullshit”.
Besides the inflationary context that pushes investors to withdraw from cryptocurrenciesMr. Minerd considers that the recent crash of Terra/LUNA encourages financial institutions (ECB, FED, etc.) to regulate more.
Read also Bitcoin (BTC) – Next step $50,000?
And the professional investor concludes his speech as follows: “The majority of these currencies are not currencies, they are junk”. To be continued…