Scott Minerd, chief investment officer at Guggenheim Partners, has said the market capitalization of cryptocurrencies will fall below the recent local low as the industry has not yet been "cleansed" of troubled participants.
According to him:
"I think the market will continue to deflate. I think we're in for something akin to the dotcom collapse, so we can figure out who the winners are here and who the losers are. I don't think we've completely cleaned up the system."
Minerd claims that in the short term we can expect a rise in cryptocurrency prices, which is a good opportunity for speculators to make money.
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He has pointed out that in the long term, the sector will have problems. In his opinion, regulatory pressure and the lack of strong institutional support will have an effect.
Last July 27, the Fed increased the key rate range by 75 basis points at a time, to 2.25-2.5%. The crypto market reacted to the decision with growth.