There’s gonna be a washout

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Alex Dovbnya

Scott Minerd is convinced that cryptocurrencies will be transformative for the global economy, but they need the right regulatory framework

During a recent Bloomberg interview, Guggenheim Partners Chief Investment Officer Scott Minerd warned that there will be a crypto washout.

Minerd drew a comparison between the cryptocurrency industry and the dotcom bubble. He also added that he did not understand the hype around the non-fungible token (NFT) sector which now seems to have died down.

The Guggenheim executive is confident that the cryptocurrency industry will have survivors, but he did not mention any specific projects that can overcome the current crisis.

In order to move forward, the cryptocurrency industry will need a regulatory framework that would be able to legitimize the fledgling sector.

I think it will transform the general economy, added Minerd.

However, following the FTX collapse, the investor believes there will be more financial jolts that may not necessarily be limited to the cryptocurrency industry.

As reported by U.Today, Minerd predicted that the price of Bitcoin could hit the $8,000 level before resuming its rally. So far, this ultra-bearish forecast has not materialized. The price of Bitcoin partially recovered after hitting a multi-year low of $15,479 on the Bitstamp exchange following the fall of the FTX exchange. Earlier this week, the flagship cryptocurrency surged above $18,000.

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