Guggenheim Partners chief investment officer (CIO) Scott Minerd says bitcoin’s bull run may have peaked following its surge above $40,000.
Speaking in an interview with CNBC on Tuesday, Minerd said bitcoin’s price appeal was cooling off and that the cryptocurrency could retrace back to $20,000.
For the time being, we have probably put in a top for bitcoin (BTC, -10.05%) for the next year or so.
Bitcoin had previously recorded a record high of $41,962 on January 8 before dipping back into the $30k range.
Minerd continued, saying the pullback was not unexpected. He explained that price dips tend to follow rallies, such as bitcoin’s epic run to end 2020.
When we have a doubling of a price of an asset in the course of a month, we are prone to having a setback.
In an interview with Bloomberg last month, the Guggenheim CIO said bitcoin’s fair value was pegged at $400,000. However, Minerd warned a frenzy of speculation had overtaken the market for crypto, leading the investment firm to tread more cautiously.
— Bloomberg TV (@BloombergTV) January 16, 2021
Guggenheim Partners, an investment firm with over $230 billion in assets under management, reportedly began investing in bitcoin when the price was trading around $10,000.