Guggenheim Partners – Bitcoin Could Decline to $20,000 Before Starting New Rally
One of the senior management staff at Guggenheim Partners, a financial services provider intending to gain exposure in Bitcoin, believes that the numero uno cryptocurrency is on course to decline to $20,000.
Specifically, Guggenheim’s chief investment officer (CIO) Scott Minerd forecasts that Bitcoin will not record a fresh all time high any time this, as per the CNBC closing Bell program shown on January 21.
After recording $41,950 on January 8, Bitcoin has very little chance to reach or breach that level till the end of 2022. As per Minerd:
In spite of Minerd’s near-term bearish outlook for Bitcoin, the CIO supposedly maintains his forecast of $400,000 for Bitcoin in the long-run. By the end of last year, when Bitcoin was making new all-time highs, the CIO had forecast $400,000 as a long-term price target for the king of cryptocurrency.
Subsequently, on January 10, he issued a bearish view of Bitcoin for the near term, arguing that Bitcoin’s steep price rally is not sustainable forever. A section of the Crypto community interprets Minerd’s contrasting forecasts in a different manner. A crypto enthusiast has posted his contracting views about the price of Bitcoin, side-by-side on Twitter.
“I think for the time being, we probably put in the top for bitcoin for the next year or so,” says @ScottMinerd. “And we’re likely to see a full retracement back toward the 20,000 level.” pic.twitter.com/0mUnkOSyW9
— CNBC’s Closing Bell (@CNBCClosingBell) January 20, 2021
— xCR1337 (@cryptonator1337) January 21, 2021
In the final leg of 2020, Guggenheim Partners entered into the cryptocurrency sector by filing an application with the US SEC Securities and Exchange Commission to “seek investment exposure to Bitcoin through Grayscale’s Bitcoin Trust product.”
Minerd’s bearish view of Bitcoin has come against the backdrop of another price correction that has led the numero uno cryptocurrency below $34,000 on January 20. There are news reports indicating that Bitcoin was mostly sold by Asian sellers in the initial two weeks of this month.
Notably, the traditional US markets have also begun to record a price correction starting January 19th. At the time of writing this article, Bitcoin was trading at $32,401, reflecting a loss of 7.2 % in the last 24 hours. However, the cryptocurrency continues to trade with a gain of about 43% in the last 30 days.