There is no reason for investors to buy bitcoins at this time, according to the president of Guggenheim Investments, Scott Minerd. The world’s largest cryptocurrency is in the midst of a collapse that could bring it to a low of $10,000, Minerd said in an interview with Cnbc.
“When we look at the history of cryptocurrencies and see where we are, I really think this is probably a crash, and you know that a crash would mean we’d be down 70-80%, which, let’s say, is between $10,000 and $15,000,” he said.
Bitcoin is currently trading around $33,300, about 50% below the all-time highs above $60,000 it reached just three months ago. The fall in prices is due to a number of factors, such as increasing regulatory scrutiny from China to the UK, the environmental impact of cryptocurrency mining, and concerns that the asset in general has no inherent value. Its most outspeaing evangelists and skeptics do not come close to a consensus on the prospects.
“Let’s put it this way, I wouldn’t be in a hurry to buy bitcoin and I don’t see any reason to own it right now,” Minerd told CNBC. “If you’re going to be a speculator, speculate that’s headed down.”
Minerd wasn’t always a bitcoin bassist. In December, he told Bloomberg News that it should be worth “about $400,000.” But in May, Minerd tweeted that “cryptocurrencies have proven to be tulipmania,” referring to the seventeenth-century speculative bubble related to tulip bulb prices.
And late last month he had another ominous prediction: “Expect more drops in cryptocurrencies as bitcoin crosses support,” he tweeted. “The next likely support level is $20,000.”