Guggenheim’s Scott Minerd Says Bitcoin Could Bottom Out At $10,000

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. 

“Real Bottom” for Bitcoin Will Be at $10K: Scott Minerd

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.

The investor also urged caution on hastening any bets should Bitcoin drop to $20,000. He said that investors shouldn’t be “anxious to be putting money in bitcoin right now”, suggesting that markets could take years to recover from such declines. He sees Bitcoin trading in the red for the time being, before things begin to look good for the currency.

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. 

Guggenheim Filed SEC Amendment to Invest in Grayscale Bitcoin Trust(GBTC)

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. 

After Bitcoin crashed in May, Minerd likened the crypto market to the Dutch Tulip Mania of the 1630s. In a post on Twitter, he wrote, “Crypto has proven to be Tulipmania. As prices rise, tulip bulbs and #crypto currencies multiply until supply swamps demand at previous market-clearing prices.”

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.