There may be another crypto crash, according to huge investor

The cryptocurrencies market has taken a big hit: the total market value has shrunk from nearly 3 trillion to just 760 million in a year. But you can never say for sure whether the pain is over. According to a huge asset manager, financial markets are facing another crash, and the crypto market may be in the middle of it.

Crypto Bear Market Not Over Yet?

Scott Minerd, Chief Investment Officer of giant asset manager Guggenheim Partners, spoke to Bloomberg. Guggenheim currently manages approximately $325 billion. He explains that we were in a period when it was easy to get borrowed money, and that this has created a lot of speculation.

[Al het gespeculeer en de lage rentes] going to cause another crash, but I can’t tell you where. The weakest players fall first. Crypto was clearly one of the crazier markets.

Minerd predicted last May that bitcoin (BTC) would fall to just $8,000. That hasn’t happened yet, but if it’s up to him, it’s still coming. He does think that the market will continue to exist. He thinks it’s more like the Dot.com bubble than the end of the world.

A year ago there were about 19,000 tokens, but now this number has still not shrunk that much. According to CoinGecko there are currently still almost 13,000. “There will be another one [moment waarop de meeste coins verdwijnen]just like when the internet bubble burst.

Crypto is becoming a survivor’s market

There will be survivors, according to Minerd. After all, the digitization of currency has only just begun. How this will develop will depend on regulation that will make investing in cryptocurrencies legitimate, said the CEO.

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He also thinks that the US central bank will increase the unemployment rate by about 2% over the next two years by pursuing tougher monetary policy. At the beginning of 2021, he still expected bitcoin to go to $ 600,000 due to the loose policy of the Federal Reserve.

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