Expert Warns Cryptocurrency Value May Drop
(TruthandLiberty.com) – Over the last 5 to 8 years, cryptocurrencies have been all the rage. Many risk-averse people invested in them for two principal reasons: the promise of protection against government policies and privacy issues and the opportunity to invest in future digital currencies. Over the last year, the global economy has slid into inflation, hitting the US especially hard. Recently, the Federal Reserve began raising interest rates trying to slow inflation. As a result, cryptocurrencies have lost tens of billions of dollars in investor assets over the past few months.
At its most recent peak, Bitcoin was well above $60,000. On Monday, June 13, it was trading at approximately $23,400 — a 16% drop in just one day. Chief Investment Officer of Guggenheim Investments, Scott Minerd, warned on May 23 that Bitcoin could drop to $8,000. Still, others say it could easily wind up around $10,000.
Jeffrey Gundlach says he wouldn't be surprised if bitcoin drops to $10k https://t.co/VSw7UiQhLi
— CNBC International (@CNBCi) June 15, 2022
On Thursday, June 16, the co-founder of Bitcoin and crypto exchange BitMEX, Arthur Hayes, said if the popular cryptocurrency drops below $10,000, people might as well shut down their computers because all prediction charts will be useless for a while. Forbes said that the situation is getting so bad that severe investment losses in cryptocurrencies could force some trading companies to go out of business.
There’s a lot at stake for investors who took the risky challenge of investing in Bitcoin and other cryptocurrencies. These volatile tokens will likely remain unpredictable in the short term.
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