Scott Minerd, the Global Chief Investment Officer of Guggenheim said the parabolic rise of Bitcoin is unsustainable in the near term. He is encouraging investors to sell now to make a profit.
In a tweet on Monday, Minerd wrote, “Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”
Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.
— Scott Minerd (@ScottMinerd) January 11, 2021
His tweet resulted in Bitcoin price plunging 10% to around $31,000 from $41,000 last week.
Since December, the most valuable cryptocurrency has been rallying and its market cap surpassed Facebook’s and even exceeded the top 10 world banks. Minerd’s warning disrupted the rally. The $10,000 price drop is Bitcoin’s biggest since March 2020.
Ironically, Minerd previously predicted that Bitcoin could reach $400,000 because of its scarcity and the increasing interest of institutional investors. Furthermore, Guggenheim Partners opted to invest $530 million in the cryptocurrency through Grayscale Bitcoin Trust.
In a filing with the Securities and Exchange Commission (SEC), Guggenheim acknowledged that Bitcoin is a “highly volatile” asset and its value “could drop precipitously” because of regulatory changes, or change in user preferences to a competing token or even a “crisis of confidence” in the cryptocurrency network.
Bitcoin investors allege Minerd of misleading them
However, some Bitcoin holders and investors suggested that Minerd is trying to mislead investors with his tweet so Guggenheim can later buy at a low price.
Alex Kugler, a Bitcoin holder responded to Minerd’s tweet and said, “This is the same guy who on December 16 said “Bitcoin Should Be Worth $400,000″ and allocating to bitcoin – it’s a little more challenging with the current price closer to $20,000”. Sounds like he wants everyone to dump so his firm may buy the dip.”
On the other hand, Tyler Winklevoss founder of Gemini cryptocurrency exchange is optimistic about Bitcoin, and the price downturn doesn’t seem to bother him, he tweeted “For everyone who missed 33k last time, now’s your chance”
For every one who missed 33k #Bitcoin last time, nows your chance
— Tyler Winklevoss (@tyler) January 11, 2021
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