Guggenheim CIO on why Bitcoin is to going slip to $20K

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Guggenheim Partners’ Scott Minerd now expects Bitcoin to slip to $20,000 after expecting a $400,000 long-term price target a month earlier.

A senior executive at the Guggenheim Partners financial services firm—planning to gain investment exposure to Bitcoin (BTC)—has argued that BTC is likely to plunge to $20,000.

Scott Minerd, Guggenheim’s chief investment officer, predicts that Bitcoin will not reach another all-time high in 2021, according to the January 21 episode of CNBC’s Closing Bell.

Since reaching the $42,000 price mark on Jan. 8, Bitcoin is unlikely to grow any further until 2022, Minerd said:

“I think for the time being, we probably put in the top for bitcoin for the next year or so. And we’re likely to see a full retracement back toward the 20,000 level.”

Despite Minerd’s bearish short-term Bitcoin prediction, the CIO apparently still maintains a stance that one bitcoin will be worth as much as $400,000 one day. In late 2020, when Bitcoin was on its way to cross its new ATHs, the CIO called for a $400,000 long-term price target for Bitcoin. He subsequently went bearish on BTC in the short term, claiming that “Bitcoin’s parabolic rise is unsustainable in the near term” on Jan. 10.

Some in the crypto community have gotten mixed signals from Minerd’s varying predictions. One Twitter user juxtaposed two separate headlines with Minerd’s comments on the Bitcoin price:

Guggenheim Partners switched to the crypto business in late 2020 when the firm submitted an application with the United States Securities and Exchange Commission to gain investment exposure to Blockchain via the Grayscale Bitcoin Trust device.

Minerd’s Bearish Bitcoin forecast falls in the midst of another pessimistic Bitcoin reversal, with BTC dip below $34,000 on Jan. 20. As Cointelegraph noted, the selling pressure on Bitcoin largely came from Asia in the first two weeks of January, although the US market also began to see weakness in the correction on January 19.

At the time of writing, Bitcoin is priced at $32,997, down over 5 percent over the last seven days, but still up over 45 percent over the past 30 days, according to Cointelegraph’s Bitcoin price index.