Scott Minrad believes the cryptocurrency bubble will only get worse like the dot-com bubble
Scott Minrad, global chief investment officer at Guggenheim Partners, predicted that bitcoin will continue to decline further during a recent interview with Bloomberg.
“I think it’s going to get worse, and I think we’re going to have something akin to the collapse of the internet bubble to figure out who are the winners and who are the losers here. I don’t think so.” That we have completely taken down the system so far,” Minrad said.
According to Minrad, from a trader’s perspective, it makes sense to take advantage of the opportunity to see higher prices in the near term. However, as an investor, he believes that cryptocurrencies are under pressure “from a regulatory standpoint.” Furthermore, he notes that there is no real institutional funding to back it.
Bitcoin experienced a sharp rally on Wednesday after the US Federal Reserve decided to go with an increase of 75 basis points, as reported by U.Today. The cryptocurrency rose to $23,452 on the Bitstamp exchange after dropping up to 14% following the central bank’s announcement.Speaking about the recent relief rally, Minrad said the Fed may not be as bullish as advertised.
Also, the leading investor says that it is really hard to argue that the US is not in recession, countering the claims of Fed Chair Jerome Powell.
As reported by U.Today, Minerd predicted that the $8,000 level could eventually be the “final bottom” of bitcoin. However, it should be noted that the investor has made some incorrect price predictions in the past.