Bitcoin could plunge 50% from current levels after rising too much, too fast.

  • “I think we could pull back to $20,000 to $30,000 on bitcoin,” Guggenheim’s Scott Minerd told CNBC on Wednesday.
  • Bitcoin’s price recently ran up to record highs close to $65,000 per token.
  • Minerd remains long-term bullish on the cryptocurrency whose price he sees eventually hitting as high as $600,000.

Bitcoin’s price is due for a plunge after its swift run-up to record highs, and a drop could push the cryptocurrency to as low as $20,000, Guggenheim Partners’ Scott Minerd said Wednesday.

“Given the massive move we’ve had in bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in bitcoin,” Minerd said in an interview on CNBC’s “Worldwide Exchange.”

Bitcoin on Wednesday traded above $55,500 after last week’s surge to near $65,000 on the same day that cryptocurrency exchange Coinbase made its trading debut on Nasdaq.

“I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd said.

The Guggenheim CIO is bullish on the cryptocurrency over the long-term. The digital asset has seen adoption accelerate among major institutions this year. Tesla, for one, said it will start accepting bitcoin as payment for its electric cars, while banks and other financial services company are broadening crypto offerings for clients and customers.

But bitcoin’s price looks ripe for a pullback before rebounding, Guggenheim’s global chief investment officer said.

Still, Minerd foresees bitcoin’s price eventually rising to $400,000-$600,000 per token.

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