Guggenheim’s Scott Meinerd made another gloomy prediction for the price of bitcoin, noting that institutional demand is not enough to keep the asset above $ 30,000.
An investment manager at a financial company told Bloomberg TV that the institutional investor base is not large enough to support current interest rates.
At the moment, there is no reality of institutional demand that will support the price at $ 35,000 or even $ 30,000. I don’t think the investor base is large enough or deep enough at this point to support such a valuation. ”
Minerd added that bitcoin is still a viable long-term asset class. Since peaking at $ 42,000 on January 8, Bitcoin has adjusted 27% to current prices of around $ 30,600. Three notable lower highs on the chart indicate a strengthening downtrend.
The Guggenheim boss also believes there is something to be saved from this downward pressure, adding that “it’s not uncommon to see stressors like this:”
“Now that we have all these small investors in the market and we see this trading moment, they see the opportunity to make money, and this is exactly the foam that you expect when you start approaching the market.”
Maynard told CNBC on January 20 that he expects a full refund of up to $ 20,000. If this scenario were to be realized, it would require a correction of more than 50%, and this has happened several times during previous market cycles. Bitcoin last fell by more than half in March 2020, when it dropped from just over $ 10,000 to under $ 5,000 in just three weeks.
The Guggenheim hasn’t changed its stance on bitcoin’s long-term outlook, but Minerd said in December that the company’s core business showed bitcoin could be worth around $ 400,000.
As bitcoin approaches the $ 30,000 psychological support level, analysts say the looming expiration of $ 4 billion BTC options could benefit the bulls.