Guggenheim CIO: The price of Bitcoin could drop to $ 8,000

Guggenheim CIO: The price of Bitcoin could drop to $ 8,000

Monday (May 23), Scott Minerd, Global Chief Investment Officer Guggenheim Partnersand a man who said last December that “Bitcoin should be worth about $ 400,000” predicted how low the price of Bitcoin could go.

Minerd is also chairman of the board Guggenheim Investments, which is “Guggenheim Partners’ global asset management and investment advisory division with total assets of more than $ 233 billion through interest rate, equity and alternative strategies.” Guggenheim Investments focuses on “the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, asset managers and wealthy investors”.

On December 16, 2020, after the price of Bitcoin had finally broken the $ 20,000 level on all cryptocurrencies to set a new all-time record, Minerd, Guggenheim’s chief information officer, spoke about Bitcoin. to interview Bloomberg on TV.

The interview was started by Guggenheim’s Chief Information Officer, who asked Scartlet Fu, a senior editor at Bloomberg TV’s Markets Desk, about the Guggenheim Macro Opportunities Fund and its directors’ decision to invest “up to 10% of its net worth in a grayscale Bitcoin Trust.” In particular, he was asked whether the Guggenheim had already begun buying Bitcoin and how much this decision was “tied to the Fed’s exceptional policy.”

Minerd replied:

To answer the second question, Scarlett, Bitcoin, and our interest in Bitcoin are tied to Fed policy and the ongoing rampant money printing. You know that we are not yet effective with the SEC on our mutual fund. So you know, we’re still waiting.

Of course, we made the decision to start distributing to Bitcoin when Bitcoin was $ 10,000. It’s a little more challenging when the current price is closer to $ 20,000. Amazingly, you know in a very short time how much of an increase we’ve had, but having said that, our basic work shows that Bitcoin should be worth about $ 400,000. So even if we have the opportunity to do so today, we’re going to keep an eye on the market and see how trading goes, which we think we’ll have to buy it in the end.

He then explained how they came up with $ 400,000 worth of Bitcoin:

It is based on scarcity and relative value, such as gold as a percentage of GDP. So you know, Bitcoin actually has a lot of gold properties and at the same time it has an unusual value in terms of transactions.

However, on 25 June 2021, the Chief Information Officer of the Guggenheim seemed to be very declining for Bitcoin, at least in the short to medium term. during an to interview At CNBC, Minerd said he expects the price of Bitcoin to fall and that investors don’t have to be “uneasy investing money in Bitcoin now” because he believes the price of Bitcoin will be in consolidation for a couple of years before it goes up. .

This was his prediction for the bottom of Bitcoin:

The real bottom, when you look at the specifications, $ 10,000 would be the real bottom, you know, it’s probably a little extreme, so I’d say $ 15,000.

Then, on October 18, 2021, when Bitcoin visited the level of about $ 62,000, CNBC interviewed Minerd, who spoke Milken Institute Global Conference (held October 17-20, 2021 in Los Angeles).

According to a report By CoinDesk, Minerd explained to CNBC why he no longer invested in Bitcoin:

One thing I learned as a bond trader years ago when you don’t understand what’s going on is to go out of the market… So discipline tells me now that I don’t fully understand this.

This is what he said about his June Bitcoin price forecast:

We went into it for a long time, sold it, retreated back to where I thought it was, and after watching it I thought we’d probably count. Well, we didn’t, so we’re not involved.

Well, earlier today, when Bitcoin was trading for about $ 30,250, Minerd spoke with Andrew Ross Sorkin. to interview CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland.

He said:

When you break less than 30,000 [dollars] continuously, 8000 [dollars] is the ultimate bottom, so I think we have a lot more room for downsides, especially when the Fed is restrictive.

According to CNBC reportMinerd also mentioned that most cryptocurrencies are junk:

Most of these currencies are not currencies, they are rubbish.

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The views and opinions expressed by the author or other persons mentioned in this article are for informational purposes only and do not constitute financial, investment or other advice. There is a risk of financial loss from investing in or trading in cryptographic assets.

h/t – CryptoGlobe

Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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