<

Guggenheim’s Scott Minerd: Bitcoin price is likely to drop another 50% to $ 20,000 to $ 30,000 because it has run too far, too fast

Bitcoin’s suffering has only intensified in the past 24 hours with a massive 10% dump to well below $50,000. The alternative coins have it even worse with substantial double-digit price slumps, and the market cap lost roughly $300 billion in a day. Even so, Guggenheim Global Chief Investment Officer Scott Minerd remains the long-term bullish trend for Bitcoin. However, according to him, the world’s largest cryptocurrency has run too far, too fast. Therefore, perhaps this is the time when Bitcoin price stops to correct for a new uptrend.

guggenheims-scott-minerd-bitcoin-price-is-likely-to-drop-another-50-to-20000-to-30000-because-it-has-run-too-far-too-fast

Guggenheim Global Chief Investment Officer Scott Minerd

Guggenheim Partners’ Scott Minerd: Bitcoin price is very frothy and could see a major correction in the near term

Minerd stated:

“I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before. I think it’s part of the normal evolution in what is a longer-term bull market, with bitcoin prices eventually reaching between $400,000 to $600,000 per unit.”

Minerd turned its head late last year when it first shared its long-range price target for Bitcoin, citing its inherent scarcity and its value relative to assets like gold. Those comments in December fell on the same day the digital currency exceeded $ 20,000 for the first time.

Bitcoin has continued the massive rally that started in 2020, up almost 90% so far this year. Institutional adoption has been seen as a driving factor for its rise. Some companies like Tesla have already invested some of their cash in bitcoin, and financial firms from Mastercard to Goldman Sachs are making moves around cryptocurrencies.

Bitcoin’s ascent speed worries even some crypto speculators like Minerd. He also warned of a short-term price cut earlier this year. Some crypto bears continue to argue that bitcoin is in a bubble and will eventually burst.

Bill Miller, a longtime value investor who has owned bitcoin for years, told CNBC on Tuesday that he was not concerned about the digital currency going into a bubble-like 2017 when it did. reached a record high of nearly $ 20,000. Bitcoin continued to plummet over the following months, losing around 80% of its value in what is known as the crypto winter.

Miller said:

“Supply is growing 2% a year and demand is growing faster. That’s all you really need to know, and that means it’s going higher.”

It may not be a straight march to the upside, though, because, with bitcoin, volatility is the price you pay for performance.

You can see the BTC price here.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS