Guggenheim Partners Warned Of A Possible Decline In Bitcoin Quotes

The cryptocurrency market’s capitalization will fall below the recent local minimum as the industry has not yet “cleansed itself” of problem participants. This was stated by chief investment officer of Guggenheim Partners Scott Minerd in a conversation with Bloomberg. 

“I think [the market] will continue to deflate. I think we are in for something akin to the collapse of the dot-coms, so that we can figure out who are the winners and who are the losers. I don’t think we have completely cleared the system,” he said.

According to Minerd, one can expect an increase in cryptocurrency quotes in the short term, which is an excellent opportunity for speculators to make money. 

He emphasized that in the long term, the industry will have problems. In his opinion, regulatory pressure and the lack of solid institutional support will have an effect.

On July 27, the US Federal Reserve System (FRS) increased the critical rate range by 75 basis points to 2.25-2.5%. The cryptocurrency market reacted to the decision with growth – on July 28, Bitcoin rose above $23,000, and Ethereum crossed the $1,600 mark.

CIO Guggenheim Partners expects U.S. inflation to outpace the regulator’s target by 2022. In his opinion, the value will be 5% -6%. He also said it was “hard to deny” a recession in the US economy.