Author:
Guggenheim Partners CIO Scott Minerd has shared another warning of possible Bitcoin declines. The Wall Street executive predicted a massive correction, dragging the primary cryptocurrency down to $20K. He pointing out that institutional interest is not enough to stabilize BTC above $30K.
Institutional Demand is Not Enough
Institutional interest towards Bitcoin will not be enough for the primary cryptocurrency to keep its head above the $30K price level. In a recent interview with Bloomberg TV, Guggenheim Partners CIO Scott Minerd outlined his bearish prediction.
According to him, the top crypto asset is further away from a stable $35K or even a $30K price, relying on just institutional demand. The reason – institutional-level business environment is “just not there” yet.
“I don’t think the investor base is big enough and deep enough right now to support this kind of valuation, “said Minerd.
Guggenheim’s CIO also said he still thinks Bitcoin is a viable asset class but in the long-term aspect.
Institutional adoption of BTC has been among the main gears to warp Bitcoin to its record ATH, reaching $42K at the beginning of 2021. Shortly after that, the coin lost its momentum, stepping back to about $30K.
Minerd also pointed out that the recent negative BTC behavior and downhill may continue in the near future.
“Now that we have all these small investors in the market and they see this kind of momentum trade, they see the opportunity to make money, and this is exactly the sort of frothiness that you would expect as you start to approach a market pop […] While there’s frothiness, while valuations are getting extended, these are poor timing tools”, Minerd added.
A Series of Bearish Opinions Despite the Long-term Bullish View
Corporate interest in Bitcoin has risen in the last few months, with institutional giants like MicroStrategy putting efforts and allocating cash into their BTC-oriented future.
Minerd has been sharing his opportunistic opinion on the bright future of Bitcoin quite a lot. Just last month, Guggenheim’s CIO shook the boat when he said that BTC could eventually climb up to $400,000, but only in the long run.
As CryptoPotato reported, he warned that the primary digital asset might even suffer a further step back to $20K this year. In addition to his bearish BTC predictions, Minerd said that it is probably “time to take some money off the table.”
Featured Image Courtesy of CNBC
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.
