The investment manager at Guggenheim Scott Minerd has issued another pessimistic forecast for the Bitcoin price in the near future.
Guggenheim’s Scott Minerd has released another dire forecast for Bitcoin. He says there isn’t enough institutional demand to keep the asset above $ 30,000
The investment manager of the financial services firm told Bloomberg Television that the number of institutional investors was not large enough to keep the current prices.
„Right now, there is simply not that much institutional demand to support a rate of $ 35,000 or even $ 30,000. I don’t think the number of investors right now is large or deep enough to support it Worth supporting. “
Minerd added that Bitcoin is still a viable asset class in the long run. Since its all-time high of $ 42,000 on Jan. 8, Bitcoin has fallen 27 percent to its current price of $ 32,000. Three striking lower lows on the chart suggest the downtrend is intensifying.
The Guggenheim manager also believes that this downward pressure could go much further, adding that it is „not uncommon to see such pressure situations“:
„Now that we have all of these retail investors in the market and they’re seeing this kind of momentum, they’re seeing the opportunity to make money. That’s exactly the kind of exuberance you’d expect when you approach a bubble burst. “
On Jan. 20, Minerd told CNBC that he expected the price to decline to $ 20,000. Should that happen, it would mean a correction of more than 50 percent. And that has already happened several times in previous market cycles. The last time BTC fell more than half was in March 2020, when it fell from just over $ 10,000 to below $ 5,000 in just three weeks.
However, Guggenheim hasn’t changed its stance on the long-term outlook for Bitcoin. However , Minerd said in December that the company’s fundamentals showed that Bitcoin could be worth around $ 400,000.
As Bitcoin approaches the psychologically important support level at $ 30,000, the imminent phasing out of $ 4 billion in BTC options could favor the bulls , analysts say.