Comparisons of bitcoin with the “tulip mania” of the 17th century seem to have been forgotten. But after yesterday’s correction, Scott Meinerd, investment director of Guggenheim Partners, “changed the shoe on the fly” and moved to the camp of crypto skeptics.
Just a few months ago, Minerd did not rule out that bitcoin could rise to $ 600,000. However, after the market crash on May 19, when bitcoin slipped from $ 42,000 to $ 30,000 within a few hours, Minerd compared the cryptocurrency market to the “tulip rush” in Holland. Tulip bulbs were sold at such inflated prices that people were ready to sell their land and property. When the market was oversaturated and the demand for tulips subsided, their prices plummeted, leading to the ruin of many entrepreneurs.
Minerd
wrote on Twitter that the same situation is happening with cryptocurrencies, as their supply “suppressed demand.” This radical change in Minerd’s mind can be easily explained if he became one of those who bought BTC at the highs. However, a sharp change in sentiment due to a correction in the market looks strange to an experienced financier.
Compound founder Robert Leshner disagrees with Minerd, saying the tweet is evidence of his financial illiteracy. “It’s like saying that the supply of shares is growing along with the demand,” added Leschner, explaining that the supply of Bitcoin and other cryptoassets does not increase depending on their value.
Cryptocurrency blogger Lark Davis also criticized Minerd for such statements, reminding him that Guggenheim was going to invest in cryptocurrencies. Davis suggested that Guggenheim did not thoroughly study the topic of cryptocurrencies, otherwise Minerd would not have written such “shocking words.” Some traders suggested that the investment company tried in this way to belatedly reduce the price of bitcoin in order to buy it.
This is not the first time that Minerd has changed its stance on bitcoin. In December, he predicted that its rate would reach $ 400,000, and later raised the bar to $ 600,000. However, at the beginning of the year, Minerd said that the demand of institutional investors alone was not enough to maintain the value of bitcoin at a high level, and in April he himself predicted the ongoing correction. Meanwhile, bitcoin is already trading above $ 40,000 again, having almost completely won back yesterday’s collapse.

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