Scott Minerd, co-founder, and chief investment officer at Guggenheim Investments, believes Bitcoin is bound to nosedive yet again and bottom out at $10,000 to $15,000 in this plunge. The prominent investor shared his projection on the largest cryptocurrency in a recent interview on CNBC.
During the interview, Minerd said that Bitcoin’s “real bottom” should be $10,000. However, he admitted that the price target was a “little extreme”, and settled for $15,000 instead. He added that Bitcoin had benefitted from "central bank liquidity", but when this liquidity reduces, it’ll sink the digital asset along with it.
Despite his pessimistic forecast, Minerd thinks that Bitcoin will trend upwards in the long term. He cited research from Guggenheim which valued the primary crypto at $400,00 to $600,000 if it becomes widely adopted as a store of value like gold.
Shortly before Guggenheim projected Bitcoin’s meteoric rise in December, the investment firm had approached the Securities and Exchange Commission for an amendment filing. In the filing, Guggenheim had requested permission to invest 10% of its $5 billion Macro Opportunities Fund, or $500 million, into Bitcoin through Grayscale Bitcoin Trust.
Earlier this week, the flagship cryptocurrency declined below $30,000 briefly, before it jumped back to $35,000. Since then it has dropped again and is currently changing hands at $32,000.