BitcoinCryptocurrency

Crypto Market Predictions: Bitcoin Could Fall To $8000

Which was the first cryptocurrency you heard of? I bet it’s Bitcoin, and for fair reasons. Bitcoin made its investors billionaires when it surged to $65,000 in February 2021. In this article, you will see how Bitcoin could fall to $8000 in 2022. 

Bitcoin, trading at $29,342.92, has ruled over the cryptocurrency market with the highest market capitalization. It’s also a top trading asset in Coinmarketcap’s list of top cryptocurrencies. 

However, things are expected to go downhill now. Scott Minerd, Guggenheim Investments’ chief investment officer, has predicted Bitcoin’s valuation to fall, voicing forecasts about bitcoin’s valuation in recent years (BTC).

But who is Scott Minerd and why do people listen to him? Where is the bitcoin going in the future? We’ll tell you in this blog post. 

Who is Scott Minerd?

Guggenheim Partners’ Scott Minerd is a founder and managing partner. He directs the firm’s investment strategy and handles client accounts across a wide variety of fixed-income and equities assets as Global Chief Investment Officer. 

Minerd was previously a chief executive at Credit Suisse First Boston, where he was responsible for the Fixed Income Credit Trading Group’s trading and asset mitigation. 

He was in charge of the corporate bond, equity investments, and financial institutions

Why Do People Value His Prediction?

As seen by his earlier statements, Mr. Minerd is a bullish investor when it comes to Bitcoin. He also has a long-term forecast for the largest digital asset in the millionaire zone. However, if investors and traders interpreted his words as an emotional signal for a market bottom, additional confirmation data would be required.

Bitcoin Could Fall To $8000

Scott Minerd has been vocal about the predictions throughout and his predictions have gained authority given these predictions do come to surface. This time, he predicted how bitcoin could fall to $8000. 

Here’s a recap of BTC price calls by Scott Minerd:

– $600k at $60k, then $30k. 

– $10k at $30k price, bringing the total to $65k. 

– $8,500 at $30,500 (again) TBD

Minerd’s latest Bitcoin price estimate may have been raising eyebrows. Or maybe there’s a genuine concern lurking beneath this remark of how Bitcoin can be subjected to the $8k slump. 

Minerd said during a Bloomberg Television interview from the World Economic Forum in Davos, Switzerland:

“Bitcoin and any cryptocurrency at this point has not really established itself as a credible institutional investment,” “Everything is suspect.”

According to Guggenheim, there are several factors that conspired to lead to this prediction of how Bitcoin could fall to $8000. Minerd observes that there’s no meaningful resistance between the $30,000 and Bitcoin could fall to $8000 levels from a technological standpoint. 

The BTC Fear and Greed Index has remained at “severe fear” due to the cryptocurrency’s price crash. It’ll be tough sledding for risk assets as the Federal Reserve raises interest rates and tightens monetary policy. This selloff may be more apparent for those among the most challenging to assess, such as BTC.

However, the Guggenheim CIO isn’t the first person to forecast a sharp bitcoin decline. Minerd predicted that BTC would drop below $15,000 in July 2021. 

The CEO projected bitcoin’s price would fall to $20,000 in April of that year, when the currency was trading at $65,000, before backtracking to roughly $55,000. This year, we have to see if the prediction “Bitcoin could fall to $8000” adds up to the end picture. 

Where will Bitcoin Head?

Regarding its sensitivity to cyber theft, bitcoin has a key disadvantage over other fiduciary yet legal tender currency pairs: nobody is required to accept it by the court. It lacks the support of a government that has proclaimed it legitimate as a means of trade and a legal means of debt repayment (including the payment of taxes). 

On the other hand, Bitcoin is up against competition from other digital currencies. Due to the increasing use of the world wide web, the increased volume of electronic transactions, and the multiplication of digital commodities, they appear destined to grow essential.

Traditional financial organizations and huge technology companies might consider launching their digital money networks. To be broadly accepted, these systems must emulate some of bitcoin’s essential characteristics (a flexible means of exchange with minimal transaction costs) while also instilling enough confidence in their exchange rate against legal tender cryptocurrencies to keep it relatively steady. 

These technologies, which may be more secure, faster, and have lower transaction costs (in terms of energy usage or computer memory) and inspire more credibility, could win over and cause the value of bitcoins in circulation to collapse. Whether bitcoins are good enough to justify $1,000 or $100 will be called into question.

Bitcoin’s Share: Bitcoin Stock Market Conditions

Bitcoin, the world’s renowned crypto coin, has been extremely volatile recently, surging and falling dramatically in response to various news items. However, it isn’t the only virtual currency to have experienced recent volatility.

Bitcoin’s share price has dwindled as the cryptocurrency sector has matured, with other cryptocurrencies such as Ethereum now playing a significantly greater role. Crypto analysts expect this trend to continue throughout the next year as investors seek tiny pockets of cryptocurrency to make large gains.

The positive group divergence between the monthly RSI and the monthly composite index is another key development with Bitcoin’s oscillators. Connie Brown’s composite index is essentially the RSI with a dynamic computation, catching swings that the RSI misses.

Considering that most of the stock exchange is still below bear market prices, people will likewise view any negativity from retail companies or the Federal Reserve as “priced in.” Capital flows to Bitcoin and the wider cryptocurrency market has surged, as has liquidity into the tech-heavy industry.