Scott Minerd, a Wall Street warhorse and Chief Investment Officer at Guggenheim Partners, has cautioned investors that Bitcoin could record a considerable decline in the short-term, considering the steep rise it recorded in the past few months.
A week after Bitcoin recorded an all-time peak of about $65,000, Scott Minerd has stated that he expects Bitcoin is on course to record over 50% of value erosion in the days ahead.
While speaking to CNBC’s Worldwide Exchange, Minerd said “I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about Bitcoin is we’ve seen these kinds of declines before.”
Since April 2020, Bitcoin has gained more than 600% from about $7,000 to all-time high of $64,804. Bitcoin has also recorded huge declines throughout the aforesaid period, losing nearly 15% in a single day in March and almost 20% in the comparable time period last week as it dropped from its all-time peak to $52,829.
Minerd continues to have a bullish view of Bitcoin (BTC) in the long-term, indicating that prices could ultimately hit between $400,000 and $600,000 per coin. He states that a price correction in the near term would be a portion of “the normal evolution in what is a longer-term bull market.”
In recent times, Bitcoin advocate Peter Brandt stated that Bitcoin will test $46,615 to test its weekly moving average, a pattern seen even during strong rallies. Nevertheless, Brandt believes that the chances of a deep decline are very less.
While writing this article, Bitcoin was trading at $50,343, an increase of 2.8% in the past 24 hours.
