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Guggenheim CIO believes Bitcoin could come back to $20k

Photo of: Joseph Stone
by Joseph Stone

Back to pessimism for Guggenheim’s chief investment officer. As in January, Scott Minerd is worried about a possible Bitcoin crack and a price plunge to between $20,000 and $30,000.

Scott Minerd is once again sounding the alarm. The director of investments of the Guggenheim institutional is no longer at his first time. And as we enter 2021, he alternates between optimism and pessimism.

In an interview with CNBC, the financier thus brandishes the threat of a real plunge in the value of BTC. According to Minerd, the price of the crypto-asset could thus be divided by two following a sharp correction.

“Given the massive move we’ve had on Bitcoin in the short term, things are very hazy. And I think we’re going to end up with a major correction in Bitcoin,” he suggests.

For the investment manager, however, this decline would not mean the end of hopes for the rise of the first of the cryptocurrencies. He thus reminds us that BTC has already recorded falls in the past.

“I think we could go back to $20,000 or $30,000 on Bitcoin, which would mean a 50% drop. But what’s interesting about Bitcoin is that we’ve seen these kinds of drops before,” he continued on CNBC.

However, this is not the first time Scott Minerd has raised the threat of a sudden drop in the price of BTC. The last episode dates back to last January. After reaching $42,000, Bitcoin was down.

“I think at this point we’ve probably peaked for bitcoin for the next year or so,” the Guggenheim executive reacted at the time. “We are likely to see a full retracement to the 20,000 level,” he added.

And he was largely wrong. After a consolidation phase, Bitcoin was back on the rise. The ATH of $42K has in fact been largely surpassed since the beginning of January, admittedly after an overheated phase for cryptocurrencies.

Scott Minerd has actually been criticized on social networks for suggesting a decline in BTC to put pressure on the asset’s price. The objective? To allow institutional investors like Guggenheim to buy at more favorable prices.

Minerd’s latest forecast is therefore not unanimously supported. Rekt Capital believes on Twitter that it is still too early to call for more than a correction. “In 2017, the average BTC bull market correction lasted 16 days. The most recent pullback has lasted only 7 days,” he writes.