Bitcoin Bear Guggenheim CIO is Back, Calling for Risk-off in Crypto & Equity Alike
Bitcoin has “gotten caught up into the speculative bubble,” says Scott Minerd, who is bullish on the economy and expects the inflation to go down in the second half of the year.
Scott Minerd is back with his bear take on Bitcoin prices.
In an interview with Julia Chatterley at CNN, when asked about the cryptocurrency market and his $400,000 price target for the trillion-dollar market cap cryptocurrency, which was later further elevated to $600k, the Guggenheim CIO said that has been over the longer time horizon, 10-20 year time frame.
“It clearly has gotten caught up into the speculative bubble.”
With BTC price now around $58k, Minerd expects a pullback as much as 68%, which he said would be “a great entry point.”
“When we get a risk-off moment, we could be seeing BTC pullback to somewhere between $20-30k.”
But this isn’t the first time Minerd has made a bearish remark; back in January, before the company’s investment in GBTC was approved by the SEC, he had advised people to take money off the table as well.
Since he advised to sell BTC, the price of Bitcoin has rallied about 100%. The crypto market participants, in contrast, have been expecting even shallower dips along the way in what has been called a “supercycle.”
Minerd’s risk-off sentiments, however, aren’t limited to Bitcoin. He is of the same opinion about the stock market, which he said “had a great performance,” and it might now be a good time to take stuff off the table and invest later.
He said the Guggenheim, which was risk-on since the height of the pandemic, has already reduced its risk in the last week. On Thursday, the S&P 500 surged to a new all-time high at nearly 5,000.
Meanwhile, Minerd remains “bullish” on the economy. Unlike the IMF's expectation for the US economy, he predicts the growth to be somewhere between 8%-10%, the highest growth since 1983 when it was coming out of depression.
He isn’t concerned about the inflation either, which may be higher right now, but Minerd expects it to go down in the second half of the year.