Scott Minerd. Source: CNBC
Despite maintaining long-term bullish views on bitcoin, Guggenheim Partner’s Chief Investment Officer Scott Miner believes that the asset will not surpass its early 2021 top of $42,000 again. As such, he doubled-down on his short-term bearish perspective, saying that BTC could drop as low as $20,000.
It’s safe to say that BTC has enjoyed better days. In fact, those weren’t that far along as the cryptocurrency was frequently charting fresh all-time highs until a few weeks ago when it topped $42,000. Since then, though, the asset has failed to sustain its price tag at such a high spot and has lost nearly $10,000.
While most cryptocurrency proponents admired BTC’s performance and preached that the asset could skyrocket into a six-digit price territory by the end of the year, Guggenheim’s CIO Scott Minerd offered the opposite opinion.
Previously, he warned that such a parabolic price increase is unhealthy for the long-term growth and forecasted a correction. During a recent CNBC interview, the executive doubled-down on his view. He believes that BTC has already reached its 2021 top at $42,000 and said that even a retracement towards the 2017 record of $20,000 is not out of the question.
“I think, for the time being, we probably put in the top for bitcoin for the next year or so. And, we are likely to see a full retracement back toward the $20,000 level.”
Nevertheless, Minerd is quite optimistic about BTC’s long term performance. He previously confirmed his $400,000 per coin prediction, saying that the asset has turned into a “frenzy.” Moreover, Guggenheim Partners could start allocating funds into the primary cryptocurrency at the end of January, according to documents that the company filed with the SEC.
Minerd is not the only representative of the traditional financial scene that has recently highlighted that BTC is in bubble territory.
Jeffrey Gundlach, the CEO of DoubleLine Capital and so-called Bond King, also expressed a similar opinion in mid-January. He outlined that the cryptocurrency has shown several signs of an overbought phase that could lead to a substantial price decline.
More recently, a study with over 600 market professionals initiated by Deutsche Bank concluded that bitcoin, as well as US tech stocks, are the biggest current bubbles. The participants also envisioned an upcoming correction for both asset classes.