Bitcoin’s [BTC] six-fold increase over the last couple of months, undoubtedly urged several into investing in the cryptocurrency. This surge not only lured investors but also paved the way for a slew of speculations and predictions about the price of the king coin. While some noted that the drastic rise in BTC’s price was nothing but a mere bubble in the making, a few others believed that the coin had the potentials of soon hitting $100K. Guggenheim’s Scott Minerd seemed to have jumped onto this bandwagon.
Recently speaking to CNBC, Scott Minerd of Guggenheim Partners pointed out that the king coin could encounter hurdles before making it big.
Bitcoin ‘Very Frothy’, Notes Minerd
Minerd has time and again asserted his inclination towards BTC. While the world is commending BTC for its impeccable price change, Minerd pointed out that the asset had “run too far, too fast.” He suggested that Bitcoin’s short-term price movement has left things very frothy which in turn could cause the king coin to endure a major correction.
At the time of writing, BTC was priced at $54,175. The largest cryptocurrency recently witnessed a major dip from an all-time high of $64K. Noting that the king coin would be enduring a much bigger drop Minerd added,
“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.”
Additionally, the Global Chief Investment Officer of Guggenheim, Minerd also suggested that such dips were to be expected during “the normal evolution in what is a longer-term bull market.” Furthermore, this “longer-term bull market” would mean BTC’s price hitting $400K to $600K, he insisted.
While the price of BTC plummeted from its all-time high to a low of $54K, several investors encouraged individuals to “buy the dip.” This further affirms that a strong bullish sentiment persisted despite the crypto’s recent downfall.