“Not the Death of Crypto,” Clarifies Guggenheim CIO After Calling it “Tulipmania”
Scott Minerd has always been all over the map with his crypto takes that have only proven to be untimely. His latest comes as BTC price closes on to $42k after crashing to $30k and lower yesterday.
- Scott Minerd just can’t help himself from dishing out bad takes.
The Global Chief Investment Officer at Guggenheim Partners took to Twitter to share what he really thinks of the Bitcoin market after the cryptocurrency price crashed 54% and the total crypto market capitalization lost billions of dollars. Minerd said,
“Crypto has proven to be Tulipmania. As prices rise, tulip bulbs and crypto currencies multiply until supply swamps demand at previous market clearing prices.”
And he can’t be more wrong. For starters, Tulips went up, crashed, and then never came back. However, it is Bitcoin’s third bull market. Not only has BTC been making a new all-time high in every cycle, but Bitcoins’ low also has been going up and up almost every year.
When it comes to the cryptocurrency market, it is best that one does not listen to Minerd because every single take of his has been untimely.
Minerd’s firm actually did not get into Bitcoin until this year. At the end of January, they received the SEC approval for buying Grayscale Bitcoin Trust (GBTC) shares.
And since the sell-off of March 2020, BTC price had already run more than 800% by Jan. 31st.
Before Bitcoin made a new all-time high of $65,000 in mid-April, Minerd advised investors and traders to take profits off the table on several occasions. While predicting a drop to $20,000, he said that the bull market is over.
Already, the crypto market is recovering from the deep rout, with Bitcoin trading just under $42,000 at the time of this writing, up from the $30,000 low we saw just yesterday.
“De-Levered Markets get crushed. Doesn't matter what the asset is. Stocks. Crypto. Debt. Houses. They bring forced liquidations and lower prices,” noted billionaire investor Mark Cuban who has become a pro-crypto and has taken a special interest in DeFi while testing out various protocols.
In a separate tweet, Minerd then clarified that “This is not the death of crypto just as the collapse of Tulipmania was not the end of tulip bulbs!”