The CIO of investment firm Guggenheim warns that Bitcoin (BTC) is in a speculative bubble and that a massive pullback may be on the horizon.
In a new CNN interview, Minerd says that the flagship cryptocurrency is surging too fast and that a deep pullback to the previous bull market’s high is not out of the question.
“When I made the $400,000 statement, I’m looking at it over a period of 10 to 20 years. Of course, the market took off.
I first started looking at buying Bitcoin at $10,000. Today, I don’t know where we are anymore. It’s become so rich, so fast, maybe around $50,000, but it clearly has gotten caught up in the speculative bubble that Gamestop (GME) got into and a number of these other stocks. When we get a risk-off moment, we could be seeing Bitcoin pull back to somewhere between $20,000 and $30,000…
Parabolic markets aren’t sustainable, and that’s one of the reasons why I think Bitcoin has gotten a little bit ahead of itself in its long-term trend.”
While Minerd has taken a bearish stance on the largest crypto asset, he offers a consolation for those who are waiting to jump on the Bitcoin bandwagon.
“I think for long-term investors, that’ll be a great entry point.”
In February, Scott Minerd said the price of Bitcoin could surge as much as 10x from its current value of around $60,000.
“If you consider the supply of Bitcoin relative … to the supply of gold in the world, and what the total value of gold is, if Bitcoin were to go to those kinds of numbers, you’d be talking about $400,000 to $600,000 per Bitcoin.”
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