Guggenheim Partners’ investment director Scott Minerd said in an interview with CNBC that he remains optimistic about the long-term prospects of bitcoin, but the price of the first cryptocurrency has risen too quickly and by much.
“Given the massive movement we’ve seen in Bitcoin in a short time, there is a lot of foam in the situation. I think we’ll have to go through a major correction, ”Minerd said.
On April 18, the price of digital gold reached a new all-time high above $ 64,000. On Sunday, March 18th, the rate collapsed, at the moment dropping below $ 52,000. The investor believes that this may be just the beginning.
“I think we could go back to $ 20,000– $ 30,000, which would be a 50% decline, but the most interesting thing about Bitcoin is that there have been similar drops before,” he said.
According to him, such a correction is part of the “normal evolution of a long-term bull market.” In this regard, he remains true to his prediction that the price of the first cryptocurrency will reach $ 400,000 to $ 600,000.
Minerd first warned about a possible decrease in bitcoin quotes to $ 20,000 in January, after the flagship had overcome the $ 40,000 level.
The likelihood of a deeper correction in bitcoin was also announced by JPMorgan strategist Nikolaos Panigirtzoglu.
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