As per Guggenheim’s chief investment officer (CIO) and noted Bitcoin bear Scott Minerd, Bitcoin is in for another rude awakening after losing more than half its value since hitting record highs this spring.
‘Minerd told CNBC this morning that bitcoin could sink as low as $15,000, less than half of its current value, but continuing a significant slide since earlier this year.
Minerd told CNBC that if you look at the technicals, $10,000 would be a good bottom. However, that’s a little extreme, so that I would say $15,000. According to the CIO, that’s roughly 25 percent lower than what other analysts believe the likely bottom of Bitcoin will be.
These comments illustrate a rapid cooling down in enthusiasm for the digital currency – at least, in some quarters.
Minerd has a history of accurately predicting Bitcoin’s troubles. He accurately predicted a “major correction in bitcoin” in April when the token was near all-time highs of around $55,000.
“I believe we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50 percent decline, but the fascinating thing about bitcoin is we’ve seen these kinds of slumps before,” Minerd told CNBC at the time.
The value of Bitcoin has undoubtedly slipped below $30,000 earlier this week for the first time after January.
Minerd is less likely to have predicted Elon Musk’s criticism of the token or a massive crackdown on cryptocurrency mining in China.
In a statement to the CIO, the Federal Reserve has signaled its intention to roll back its bond-buying programs, which were started during the height of the pandemic in 2009. There will be less liquidity since fewer people will convert assets into cash to buy Bitcoin. As a result, the token’s value sinks even more.
After peaking at around $20,000 in late 2017, bitcoin declined in value over the next several years. In April, the token sailed to highs of above $63,000, partly driven by Tesla CEO Elon Musk’s enthusiasm, but came tumbling back down after Musk criticized the technology behind it. China’s crackdown on cryptocurrency mining has also significantly added to Bitcoin’s current demise.
Minerd, however, does not see Bitcoin as a sinking ship. Bloomberg reported in December that the investor believes the digital currency is worth $400,000. “It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP,” he explained at the time.
“People shouldn’t put money into bitcoin right now,” Minerd told CNBC this morning, noting that the token will shift and consolidate in the coming years.