In a recent interview with CNBCan American investor, Jeffrey Gundlach, commented that it would not be a surprise if the price of Bitcoin bottoms out at the $10,000 mark.
According to Gundlach, it was evident that the flagship coin would quickly drop to the $20,000 level after the bulls failed to hold the $30,000 support. The investor believes that the trend seen in cryptocurrencies at the moment is not favorable.
Given the significant price drop, the founder of DoubleLine Capital somehow doesn’t think Bitcoin is a good investment at the moment. On Wednesday, billionaire Sam Zell expressed a similar opinion, saying that although Bitcoin is trading at around $21,000, the coin is not cheap.
On June 15, the largest cryptocurrency fell to $20,079 before finding a slight recovery phase. Thereafter, Bitcoin started trading in the green, along with the main US stock indices. This scenario was seen after US Federal Reserve Chairman Jerome Powell declared that large interest rate increases would be rare.
The interest rate increases by 75 basis points
The world’s strongest reserve bank yesterday raised the key interest rate by 75 basis points, making it the highest since 1994. However, the Fed is still committed to restoring skyrocketing inflation to the desirable 2% target.
At the moment, it seems that the price of Bitcoin will go down considerably before bottoming out in the existing bear market. Guggenheim’s Scott Minerd said the price of the real coin could soar to as high as $8,000.
According to veteran trader Peter Brandt, Bitcoin holders should wait years before the flagship coin begins its journey to another all-time high.
Right now, Bitcoin is changing hands at $20,618 with a drop of 7.6% in the last 24 hours.