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Bitcoin Could Witness a Correction to $20,000 to $30,000, Says Guggenheim CIO

Godfrey Benjamin

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The Chief Investment Officer (CIO) of Guggenheim Partners, Scott Minerd has re-emphasized his short-term bearish price projections for Bitcoin (BTC) in an interview with CNBC.

Per the report, Minerd believes Bitcoin has risen too fast too soon and is poised to see a correction in the short term.

“Given the massive move we’ve had in bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in bitcoin,” Minerd told CNBC’s “Worldwide Exchange.”

Minerd has always held the strong belief that Bitcoin’s meteoric rise in the price of Bitcoin is unsustainable in the short term. Bitcoin has dwarfed all major global institutional assets including Gold, Oil, the S&P 500 index, and others. With a gain of over 700% in the past 52-weeks, Bitcoin’s growth has continued to be a source of broad price speculations amongst analysts.

“I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd said. However, he noted that it is part of “the normal evolution in what is a longer-term bull market,” with bitcoin prices eventually reaching between $400,000 to $600,000 per unit in the longer term.

The ongoing bull run in Bitcoin and the cryptocurrency industry, in general, appear different from the others preceding it. Bitcoin price first attained a price close to $20,000 back in December 2017, however, the digital currency lost over 80% of its price in the succeeding month. This current bull cycle has proven to be one of the longest stretches for the coin which was first mined back in 2009.

Bitcoin’s Supply and Demand will Fundamentally Influence Future Price

The roles of institutional investors in backing Bitcoin through purchases and the allowance of BTC payments have contributed to the growth of the cryptocurrency. However, while the influx of institutional investors is likely to rise in the coming days, Bitcoin’s growth is inherently locked and will be fueled by its limited supply and growing demands.

“Supply [of bitcoin] is growing 2% a year and demand is growing faster. That’s all you really need to know, and that means it’s going higher,” Bill Miller said in an interview on CNBC’s “The Exchange.” It may not be a straight march to the upside, though, because “with bitcoin, volatility is the price you pay for performance,” he added.

Besides Minerd, other industry leaders are also enthusiastic about the future price potentials of Bitcoin and other major altcoins in the ecosystem.

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TOP 10 CRYPTOCURRENCY

#NamePriceMarket CapChangePrice Graph (24h)
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  • bitcoinBitcoin (BTC) $ 61,028.00
  • ethereumEthereum (ETH) $ 4,025.39
  • cardanoCardano (ADA) $ 2.16
  • polkadotPolkadot (DOT) $ 44.28
  • chainlinkChainlink (LINK) $ 29.84
  • litecoinLitecoin (LTC) $ 193.42
  • bitcoin-cashBitcoin Cash (BCH) $ 633.17
  • stellarStellar (XLM) $ 0.377062