Guggenheim’s Scott Minerd again took a negative approach to Bitcoin. Minerd said there is not enough institutional demand to keep the price of cryptocurrency above $ 30,000.
The financial services giant’s CIO suggested that the institutional investor base is not big enough to sustain current prices, according to Bloomberg Television’s report.
“Currently, there is no corporate demand reality to support 35 thousand dollars or even 30 thousand dollars. I don’t think the current investor base is large enough to support this kind of assessment. ”
Minerd added that Bitcoin is still a reliable asset class in the long run. Bitcoin has experienced a 27 percent correction since reaching $ 42k on January 8, and is currently trading at $ 31,186. The three prominent lower peaks in the chart indicate that the downward trend is strengthening.
The Guggenheim manager also thinks the downstream pressure will continue further and says it is common to see such jams.
Minerd told CNBC on January 20 that the BTC price is likely to pull back to $ 20,000. If this scenario materialized, Bitcoin would have experienced more than 50 percent corrections, and such corrections have happened several times in previous market cycles. Bitcoin last halved in March and fell from $ 10,000 to less than $ 5,000 in just two weeks.
The Guggenheim’s long-term outlook on Bitcoin has not changed. Minerd said that the price of Bitcoin could go up to $ 400,000 in December.