It looks like the current Bitcoin (BTC) price rally isn’t just creating a FOMO among retail players but institutions as well. Just as the Bitcoin (BTC) price surged past $40,000 it has started giving jitters to some of the big industry veterans. Guggenheim Partners’ Scoot Miner who earlier predicted that Bitcoin (BTC) can touch $400,000 has now called for profit-booking.
In his recent tweet, the chief investment officer at Guggenheim writes:
“Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table”.
A 180-degree turn in Minerd comments comes in less than a month! The last time when Minerd gave a price target of $400K, BTC was trading under $20,000. Probably, the Guggenheim boss hadn’t expected Bitcoin to escalate this fast. The recent shift in sentiments from the Guggenheim chief has further curiosity as it got us looking into the matter!
There’s a high probability that Guggenheim feels missed-out after major institutions scooped BTC at lower levels in November 2020. As we know, Guggenheim Partners has filed with the SEC to invest $500 million into Bitcoin via the Grayscale Bitcoin Trust (GBTC). Crypto analyst Alex Krüger points out that “Guggenheim’s SEC filing to invest in bitcoin via GBTC proposed filing would become effective jan/31. Seems Minard wants to buy $500 million in bitcoin and as price runs higher he’s now telling people to take profits”.
Guggenheim's SEC filing to invest in bitcoin via GBTC proposed filing would become effective jan/31.
— Alex Krüger (@krugermacro) January 11, 2021
As we had expected, the institutional FOMO to get Bitcoin seems to be getting real. However, Bitcoin (BTC) and the overall cryptocurrency market has entered a sharp correction after a solid rally last week. The Bitcoin miners continue to make heavy profit-booking as the BTC price has tanked over 18% as of writing this article and is currently trading at $33,290 with a market cap of $615 billion. The recent price correction has eroded more than $100 billion of Bitcoin (BTC) valuations.