Scott Minerd, CIO at Guggenheim Investments, says this could be due to inadequate institutional support as Bitcoin struggles to start another record rally. According to Minerd, Bitcoin will find it difficult to trade above $ 30,000 due to the lack of adequate support from institutional investors.
The CIO, however, considers the feasibility of crypto to be “an asset class is still very likely”. In a short video, Minerd records the rise of Bitcoin and how crypto was initially not big enough to attract institutions.
However, after crypto climbed to $ 10,000, perceptions changed. The CIO explains:
When we had Bitcoin at $ 10,000 it was pretty easy to see that there was a clear path to $ 20,000. Once it got over $ 20,000, the engineering work could definitely see how you could get to $ 35,000 or more.
Minerd, who previously predicted a maximum price of $ 400,000 for the BTC, says the current investor base is not large enough to support a valuation above $ 30,000.
Not everyone agrees
However, not everyone agrees that Bitcoin, which has grown by more than 300% in 2020, will get stuck at current prices. Michael Geiger, CEO of a finance brokerage firm Libertex, disagrees with Minerd’s view. Geiger tells News.bitcoin.com that “overstretching doesn’t mean Bitcoin will stay below the number permanently.” The CEO adds:
After all, Bitcoin would move across the number even in the lower part of the log regression band, assuming the asset still has significant value.
Despite Minerd’s comments, Bitcoin has only fallen below $ 30,000 twice since Jan. 1, 2020. At the time of writing, crypto appears to have resumed its rally after going above $ 37,000 for the first time since Jan. 20.
Do you agree with Minerd’s prediction that BTC will struggle to stay above $ 30,000? You can share your thoughts in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to make an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.