Investor who predicted a $400,000 Bitcoin is now calling for a 50% drop

CryptoSlate

Scott Minerd, chief investment officer of famed investment firm Guggenheim Partners’, says Bitcoin (BTC) could see a 50% drop in the near term as it’s run ‘too far, too fast.’ He made the comments in an appearance on CNBC show Worldwide Exchange yesterday.

Guggenheim made it to the crypto history books last year after putting out a $400,000 price target for Bitcoin. The firm added it would invest up to 10% of its $5.3 billion Macro Opportunities Fund in a Bitcoin trust.

How To Get Free Crypto  

Minerd, at the time, stated Bitcoin’s scarcity combined with “rampant money printing” was the rationale behind the ambitious pierce target. But the sentiment seems to have shifted merely months later.

Bitcoin pullback, and then a rise again

In the appearance, Minerd said he remains long-term bullish on Bitcoin’s price trajectory, but stated that things were turning too “frothy” for now—a colloquial term to describe euphoria in the markets.

“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 the asset,” he said.

The statement is not unfounded. Bitcoin has risen nearly 500% in the past several months, going from under $10,000 in July last year to reaching a high of over $64,000 earlier this month. The move made it one of the top-performing (large-cap) assets in the world but attracted equal parts interest and skepticism from traditional circles.

Coinbase Banner  

“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,” explained Minerd, adding the decline would be a “the normal evolution in what is a longer-term bull market.”

Institutional investors join in

It’s not the first time that Minerd has publicly stated a large price drop on Bitcoin. A similar comment earlier this year warned of a short-term pullback in Bitcoin. Still, he’s unlike permabears who continue to argue that Bitcoin is in a bubble that will eventually burst.

Meanwhile, other institutional investors are seemingly joining in on Bitcoin’s rise. In fact, some say the price rally is just starting.

As CryptoSlate reported yesterday, Bill Miller, a legendary institutional investor who first bought the asset at $350, said in a statement that this time is different and Bitcoin’s price rally was just beginning.

FreeBitcoin Banner  

“Supply [of bitcoin] 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,” he noted, adding Bitcoin’s notorious volatility was simply the “price you pay for performance.”

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Shaurya Malwa


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.