Investment Manager Guggenheim Warns of Bitcoin Pullback, Calls It ‘Great Entry Point’ for Investors
Guggenheim CIO Scott Minerd has warned crypto investors about bitcoin’s pullback. He said bitcoin “clearly has gotten caught in a speculative bubble that Gamestop got into.” However, he noted that it will be a “great entry point” for long-term investors.
‘Great Entry Point’ for Bitcoin Investors
The chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, talked about bitcoin in an interview with CNN last week. Minerd is also the chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. Guggenheim Investments has more than $246 billion in total assets across fixed income, equity, and alternative strategies.
Commenting on how fast bitcoin’s market cap has grown, Minerd said, “It clearly has gotten caught in a speculative bubble that Gamestop got into.” The Guggenheim executive elaborated:
When we get a risk-off moment, we could be seeing bitcoin pullback to somewhere between $20k-$30k. But I think for long-term investors, that will be a great entry point.
He then discussed how “Parabolic markets aren’t sustainable,” having previously warned about bitcoin’s parabolic rise. “That’s one of the reasons why I think bitcoin has gotten a bit ahead of itself in its long-term trend … But it’s hard to get short. That’s a dangerous game.” Nonetheless, Minerd noted that there are “a lot of markets that are going parabolic.”
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The Guggenheim CIO appeared bullish about bitcoin in December last year, when he predicted that the price of BTC could reach $400K, which he later clarified will happen somewhere in the range of 10 to 20 years.
However, he subsequently focused on the negative aspect of the cryptocurrency, advising investors to sell their coins. Several people immediately pointed out on social media that Guggenheim had not bought BTC at that time.
The asset management firm’s filing with the U.S. Securities and Exchange Commission (SEC) to invest in bitcoin via Grayscale’s bitcoin trust became effective at the end of January. Then in February, Minerd made another bullish statement, stating that the price of BTC could rise up to $600K.
Do you agree with Guggenheim CIO Scott Minerd about bitcoin? Let us know in the comments section below.