Bitcoin price Today – Plunge To $20,000 Possible, Minerd Says
Despite Bitcoin‘s aggressive rally the past seven months, rising from $10,600 to a record high $65,000, a prominent investor believes the largest cryptocurrency will tumble to less than half its current value before soaring to all-time highs in the long run.
Scott Minerd, Guggenheim Partner’s global chief investment officer, believes Bitcoin‘s price is moving too fast and a major correction is likely in the horizon. In an interview with CNBC’s “Worldwide Exchange” on Wednesday, Minerd believes a drop of 50% may happen soon.
“I think we could pull back to $20,000 to $30,000 on Bitcoin, which would be a 50% decline,” he said.
The executive, however, added that a correction isn’t something investors should be worried about as this is nothing new to the cryptocurrency.
“The interesting thing about Bitcoin is we’ve seen these kinds of declines before,” Minerd added. “[It’s] the normal evolution in what is a longer-term bull market.”
Minerd is also optimistic the most sought-after cryptocurrency could reach record levels, eventually hitting $400,000 to $600,000.
“Our fundamental work shows that Bitcoin should be worth about $400,000,” Minerd told Bloomberg in December. “It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
The surge will also be driven by large investors and financial institutions’ continuous adoption of the token. In March, Tesla confirmed that customers can now purchase their electric vehicles using Bitcoin. On Tuesday, WeWork has just confirmed that it will start accepting cryptocurrency payments.
Bill Miller, a longtime Bitcoin investor, also told CNBC he’s not worried about the token being in a bubble like in 2017, when it reached nearly $20,000 before plunging and losing 80% of its value.
“Supply is growing 2% a year and demand is growing faster. That’s all you really need to know, and that means it’s going higher,” Miller said.
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