Warning of a “big fall” in the value of Bitcoin

Al-Anbat - Raneem Alhalawani

The market for crypto currencies such as Bit coin and others shrank by about half a trillion dollars last month due to losses in the value of currencies, led by losses in the value of Bit coin, which fell, according to Monday's prices, to 30 thousand dollars.

The American CNBC network quoted Scott Minard, chief investment officer at Guggenheim, that the bit coin is expected to fall further, to about 8000 thousand dollars, which will deepen the losses of this market, as this is a "significant fall” in its value.

He told the network that "When you get below 30,000, $8,000 is going to be the bottom line, so I think we have a lot more room for the downside, especially with the Fed being restricted."

Minred refers to the Federal Reserve (the US central bank) raising interest rates and tightening monetary policy.

Bit coin fell below $30,000 earlier this month, about 24 percent in the last 30 days alone.

He also predicted that most crypto currencies would be "junk" but that Bit coin and Ethereum would "survive."

"Most of these coins, they're not coins, they're junk," he said.

Minard added that additional technological advances could change that and help create a system where people get used to using crypto currencies for transactions and are confident that they will retain their value.

His comments come after European Central Bank President Christine Lagarde said crypto currencies "are worth nothing".