(Bloomberg) — Guggenheim Partners Chief Investment Officer Scott Minerd said he expects Bitcoin to fall to $8,000 and that cryptocurrency has become a market of “a bunch of yahoos.”
“Bitcoin and any cryptocurrency at this point has not really established itself as a credible institutional investment,” Minerd said Wednesday during a Bloomberg Television interview from the World Economic Forum in Davos, Switzerland. “Everything is suspect.”
Minerd said his firm bought Bitcoin at $20,000 and sold when it reached $40,000. Guggenheim no longer holds Bitcoin. If the firm were to take a position it would be to short the digital token, he said.
“No one has cracked the paradigm in crypto,” Minerd said. “We have 19,000 digital currencies … most of them are junk.”
Minerd’s comments represent a dramatic shift for an investor who once predicted Bitcoin would reach $400,000, fueled by the digital currency’s scarcity and the Federal Reserve’s “rampant money printing.” Bitcoin has fallen from a high of more than $65,000 in November to trade at less than $30,000.
Other comments:
- The Federal Reserve will probably remain committed to tightening unless there’s a big drop in the stock market. “Short of a sudden collapse in equity prices, I don’t believe the Federal Reserve is going to respond,” Minerd said
- “If the Fed blinks because of financial panic, which I think there’s a high probability of toward the second half of the year, then I think the dollar will come under pressure”
(Updates with additional crypto comments in fourth paragraph.)
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