Recently, when Bitcoin (BTC) crossed $41,500 levels, Minerd contradicted his own bullish prediction saying that it’s time for some profit-booking. However, the Guggenheim CIO clarified that it was for the short term and added that he still remains bullish on long term.
Last week on Friday, January 15, Guggenheim Partners Chief Investment Officer Scott Minerd spoke to Bloomberg Market about the recent state of bitcoin (BTC). Minerd said that he stands by his earlier prediction that Bitcoin can touch $400,000 levels in the long term.However, after that prediction, the BTC price literally doubled moving all the way up to $41,500 during the first week of 2021. He states that crypto players currently look overwhelmed and they have started to limit the order at the exchanges. Minerd also goes on to add that Bitcoin (BTC) has currently entered a short-term “speculative frenzy”. Minerd said:
“I think one thing that we’re seeing is the sudden interest in retail. We’re moving into a speculative frenzy… Perhaps it’s time to take some money off the table here”.
The debate around Minerd’s two opposite comments for Bitcoin has sparked curiosity among the crypto community. A day after the BTC price surged $41,500 on January 10, Minerd said that this “parabolic rise is unsustainable. Time to take money off the table,” he added.
Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.
— Scott Minerd (@ScottMinerd) January 11, 2021
Just at the time when Minerd tweeted it, Bitcoin had entered a strong correction. Over the last week, BTC price has tested support at $30,000 twice before resuming back northwards. At press time, Bitcoin (BTC) is trading at $35,082 with a market cap of $650 billion.Bitcoin Price Prediction Is High as BTC Is Becoming MainstreamTalking about the positive side, the Guggenheim CIO said that Bitcoin is becoming a favorable asset class slowly. Mr. Minerd still remains positive on Bitcoin price for the long term. He added:
“The other side of that is demonstrating that crypto is becoming much more mainstream. The $400,00 price I talked about was based off the supply of gold in the world, and Crypto in a lot of ways is more attractive than gold.”
Comparing it to the yellow metal Gold, Minerd said that Bitcoin (BTC) comes with additional benefits like portability and ease of transactions. Note that Guggenheim Partners is already seeking $500 million worth of exposure to Bitcoin via the Grayscale Bitcoin Trust (GBTC). This will be a 10% exposure to BTC from $5 billion Guggenheim’s Macro Opportunities Fund. The investment giant’s proposed SEC filing shall become effective on January 31.When asked Minerd if any of their funds have any allocation in Bitcoin (BTC). Minerd hinted that they are still waiting for the SEC to approve their proposal. He added that if client demand picks up, they would possibly consider some allocations. He also revealed that some small private Guggenheim funds have done some allocations.“In some of our private funds we’ve already purchased it. […] I recommended to somebody, if you believe what I said that it’ll go to 400,000 eventually, 2% of your portfolio will be 20% before this is all over,” he added.For more news about Bitcoin, please, follow the link.
