Scott Minerd, the chief investment officer at Guggenheim Partners has come out with another doomsday prediction for Bitcoin suggesting the top cryptocurrency could register a 50% downside and settle around a $20,000 price. Minerd believes the top cryptocurrency moved too fast over the past quarter and as a result, the market looks quite “frothy.” He explained,
“Given the massive move we’ve had in Bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in Bitcoin,”
“I think we could pull back to $20,000 to $30,000 on Bitcoin, which would be a 50 percent decline, but the interesting thing about Bitcoin is we’ve seen these kinds of declines before.”
Minerd is quite popular or infamous for his price predictions as it has often turned wrong, earlier when Bitcoin entered a consolidation phase in February Minerd was quick to write off Bitcoin again and said that the institutional demand was not strong enough to drive the price further. However, BTC since then has doubled its price to register a new ATH of $64,689 with not just institutions rushing to gain Bitcoin exposure, some of the staunchest critics such as Goldman Sachs and JP Morgan have added Bitcoin Support.
Bitcoin Price Corrects 20%, Long Term Prediction Still Bullish
The weekend price correction saw the top cryptocurrency fall from near ATH to $54,000 levels sparking off another speculation about it reaching its short-term top, however, most of the analysts and even Minerd are still quite bullish on the long term, suggesting BTC price could still reach $400,000 to $600,000 as the scarcity factors kick in with more institutions rushing to add the top cryptocurrency to their portfolio.
Only yesterday SoftBank owned WeWork announced they would start accepting Bitcoin and selected other cryptocurrencies as payment as well as hold it on their balance sheet. Venmo, the PayPal Owned online payment transaction giant also announced they would avail of crypto trading and holding option for their 70 million customers.