Scott Minerd, global chief investment officer at Guggenheim Partners and chairman of Guggenheim Investments, who predicted last December that bitcoin should be worth around $400,000, now predicts the cryptocurrency will drop to $10,000-$15,000.
During his interview with CNBC, Minerd stated that the crypto market is currently on the verge of collapse, and bitcoin could crash 80% of the maximum price.
“When I did my work on crypto, Bitcoin and other cryptocurrencies plainly had gone parabolic just gone parabolic, and parabolic markets are impossible to sustain. So, a normal correction, or sell-off, would be 40-50%. But when we look at the history of crypto and we look at where we are, I mean, I really do believe this is probably a crash and, you know, a crash would be maybe down 70%-80%, which let’s just say that’s between $10,000 and $15,000… I wouldn’t be in a hurry to buy Bitcoin and I don’t see any reason to pwn it right now.”
On February 2, when bitcoin was trading at $40,000, Minerd told CNN that while investment fund research indicated that bitcoin’s price could eventually reach $600,000, the pace of BTC’s rally suggests “short-term speculation.” According to Minerd, the bitcoin rally was volatile due to a lack of sufficient interest from institutional investors, and that a speculative bubble is now inflating on the crypto market, which will burst and cause a 50% crash, and that would bring the price of BTC back to about $20,000.
In December 2020, Minerd said that fund managers had decided to invest “up to 10% of its net asset value in Grayscale Bitcoin Trust.” When asked what was the reason for this decision, Minerd replied that it was “tied to the Fed’s extraordinary policy” and “rampant money printing that’s going on.” In December, Guggenheim Investments estimated that bitcoin could reach $400,000.
“It’s based on the scarcity and relative valuation, such as things like gold as a percentage of GDP. So, you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
Guggenheim Investments is the global asset management and investment advisory business of Guggenheim Partners, with total assets of over $ 233 billion, including fixed income, equity and alternative strategies. It focuses on the income and risk needs of insurance companies, corporate and government pension funds, sovereign wealth funds, endowments and funds, asset managers and wealthy investors.