Digital Assets: Bitcoin Could Tank 50%, Says Guggenheim’s Scott Minerd
“Things are very frothy,” Minerd warns.
Speaking on CNBC’s “Worldwide Exchange” Guggenheim Partners’ Scott Minerd warned that bitcoin could see another of its gut-wrenching declines – as much as 50% – as the leading crypto had likely had run too hot, too quickly. Long-term, however, Minerd remained bullish on bitcoin. (CNBC)
A major correction in the offing?
“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 warned today.
Bitcoin hit an all-time high over $64,500 on April 14 but thereafter plunged to levels around $54,800 with most of the damage occurring over Sunday.
“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, bitcoin bulls would take heart from Minerd’s remark that these declines were part of “the normal evolution in what is a longer-term bull market.” Over the long term, bitcoin could touch a value of between $400,000 to $600,000, he said.
Minerd has hitherto been a staunch bitcoin bull, and the shift in his stance could be a red flag for bitcoin speculators.
JPMorgan also sounds a cautionary note
JPMorgan analysts led by Nikolaos Panigirtzoglou are a tad worried by the technical picture surrounding the latest fall in bitcoin prices.
Bloomberg reported that bullish momentum will break down if bitcoin is unable to claw back the $60,000 level soon, in view of the JPM analysts.
Unlike similar declines during the past six months, when bitcoin dramatically bounced back each time, this time appears to be different.
They warned that “momentum decay” was more advanced and may be difficult to turn around on this occasion.
Related Story: TIME Magazine To Hold Bitcoin On Its Balance Sheet
Image Credit: Flickr
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