One senior executive at the Guggenheim Partners financial services company said that bitcoin appears to be heading into a pullback towards $20,000. Guggenheim is planning to seek investment exposure in bitcoin by the chief investment officer (CIO) Scott Minerd believes that a pullback is coming in the mid-term. This prediction comes after he also forecasted a $400,000 long-term price target about one month ago.
Minerd is convinced that bitcoin will not record any new all-time high in 2021 and he articulated his thoughts in a January 21, 2021 episode of CNBC’s Closing Bell. After peaking at $42,000 on January 8, BTC might not surge any higher until 2022. He added:
“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.”
Although he has a bearish short-term sentiment on bitcoin, Minerd still maintains his stand that bitcoin will surge to $400K someday in the future. Late last year, when bitcoin was on its way to reaching its new all-time highs, the CIO predicted a $400K long-term price target for BTC.
He eventually went bearish on January 10 in the short term, stating:
“Bitcoin’s parabolic rise is unsustainable in the near term.”
Some entities and traders in the crypto community have acquired mixed signals from Minerd’s changing predictions. One Twitter user juxtaposed some two separate headlines with Minerd’s statements on the Bitcoin price:
— xCR1337 (@cryptonator1337) January 21, 2021
Guggenheim Turns To Crypto
Guggenheim Partners moved into the crypto sector in late 2021 after the firm applied with the US Securities and Exchange Commission (SEC) to seek some investment exposure to BTC via Grayscale’s Bitcoin Trust product.
The latest bearish prediction by Minerd comes amid another major negative BTC price correction with the flagship crypto dropping towards $32,000 on January 21. According to previous reports, the selling pressure on bitcoin mainly came from Asia in the first two weeks of this month. Now, the US market has also started to see some weakness amid a correction on January 19.
At the time of writing, Bitcoin is trading at $32,200, down over 5% in the last seven days. However, it is still up almost 45% in the last month, according to bitcoin price indices.