Scott Minerd, investment director of multibillion-dollar company Guggenheim Partners, continues to insist on his forecast of a decline in Bitcoin in the short term. Earlier, Minerd said that investors should have already taken profits when Bitcoin was trading at about $ 35,000, and now he doubts the stability of the $ 30,000 level.
“Right now, there is no institutional demand that would support the price of $ 35,000 or even $ 30,000. I don’t think the investor base is large enough to support such an estimate,” he told Bloomberg.
Minerd remains convinced of the long-term prospects for bitcoin as an asset class, but argues that the decline in the foreseeable future could reach significantly lower levels, and calls such situations in the market “not uncommon.”
“Now all these small investors are on the market, they see impulse and opportunity to make money. This is exactly the kind of emptiness with which you can expect the market to burst, ”he added.
Shortly before that, Minerd admitted the possibility of a complete rollback of Bitcoin to the previous all-time high of about $ 20,000 without re-rising above $ 40,000 this year. Some believe that in his own words he is deliberately trying to bring down the price of bitcoin so that the cryptocurrency is cheaper by the time his company receives regulatory approval to buy it.
The CEO of another investment giant, BlackRock, similarly left some unflattering comments about Bitcoin this week, though his firm recently reported that it might start investing in cryptocurrency-based futures. In conversation with Bloomberg Larry Fink described bitcoin as a volatile asset with a very small market.
“This is such a small asset category compared to others. Bitcoin could be another store of value, but it has yet to be tested. It has huge volatility, and when investing small dollar amounts, it shifts by 5-6%, – said Fink. – Its long-term viability remains unconfirmed. Certain forms of digital currency will play a more important role in the future, and this could be Bitcoin. It could be something else. “
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