Institutional investment in Bitcoin alone is not enough to justify Bitcoin price levels, said Guggenheim CIO Scott Minerd, who predicts that BTC will fall below the $ 30,000 level.
Despite reports of growing institutional demand for Bitcoin, Scott Minerd of Guggenheim says these investors are not enough to keep the BTC price firmly above the $ 30,000 level.
In an interview with Bloomberg on January 28, Miners said:
“At the moment, the reality of institutional demand that would support a price of $ 35,000 or even a price of $ 30,000 is simply not there […] I don’t think the investor base is large enough and deep enough now to support this type of valuation. ”
Minerd, who manages more than $ 310 billion in assets, confirmed that he thinks Bitcoin is still a viable asset class in the long run. After making a big forecast that BTC would be worth $ 400,000 per currency in December 2020, Minerd said a month later, on January 20, that he felt that Bitcoin may have temporarily peaked and could return to $ 20,000.
Institutional adoption has been the main narrative behind Bitcoin’s incredible price hike over the course of 2020, and the BTC recorded an increase of nearly $ 42,000 earlier in the year, before a steady decline back to near $ 31,000.
Recently, the institutional giant Blackrock became the latest corporate giant to buy cryptocurrencies and companies like MicroStategy and Square and injected huge amounts of money into Bitcoin for their corporate treasures.
Cryptocurrencies are not the only speculative area of the market that Minerd is eyeing, saying the unrest around heavily sold companies like GameStop Corp. will continue until the end of the first quarter.
“It’s not uncommon to see squeezes like this […]“Now that we have all these small investors in the market and they see this kind of dynamic trading, they see the opportunity to make money and that is exactly the kind of thing you would expect when you approach a pop market. “
“While there is coldness, while assessments are spreading, these are bad weather tools […] So it can go on for quite a while. ”
Despite the current consolidation in the Bitcoin market, SkyBridge Capital founder Anthony Scaramucci believes that this is the new era of micro investors. Retail traders are increasingly avoiding Wall Street and triggering bullish races in stocks like GameStop Inc., and this is positive for Bitcoin (BTC).
In addition, Crypto Exchange Luno and brokerage OSL believe Bitcoin is still on the right track and is expected to reach $ 50,000 in the long run. As hedges against inflation continue to be sought by investors, Bitcoin’s neck-and-neck battle with gold as the best safe haven asset continues.
The price of Bitcoin may get a boost as Federal Reserve (Fed) officials vote at the Federal Open Market Committee (FOMC) meeting on Wednesday to keep federal fund rates close to 0% and continue $ 120 billion a month on bond purchases while the economy recovers. This would allow for a similar market condition that helped Bitcoin’s upward parabolic race in 2020 to continue.
An additional increase in the price of Bitcoin, as the data reveals that 100,000 BTC options are scheduled to expire on the crypto exchange Deribit today, a bullish signal according to analysts.
Bitcoin’s price is currently trading at around $ 31,333, up from an intra-day low of $ 29,376 according to CoinMarketCap.