Guggenheim Partners’ chief investment officer Scott Minerd told CNBC that he remains optimistic about Bitcoin’s long-term prospects, but the price of the leading cryptocurrency has risen too fast.
‘Given the scale of the move we’ve seen in Bitcoin in a short period, there is a lot of froth in the market. I think we’ll have to endure a significant correction,’ Minerd said.
On April 14, the price of digital gold reached a new all-time high above $64,000. On Sunday, April 18, the price slumped, briefly dropping below $52,000. The investor believes this could be only the beginning.
‘I think we could return to $20,000–$30,000, which would be a 50% decline, but the most interesting thing about Bitcoin is that such declines have happened before,’ he said.
According to him, such a correction is part of the ‘normal evolution of the long-term bull market.’ In this respect, he remains true to his forecast that the price of the leading cryptocurrency would reach between $400,000 and $600,000.
Minerd first warned in January, after the flagship breached the $40,000 level.
Earlier, JPMorgan strategist Nikolaos Panigirtzoglou also warned of a deeper Bitcoin correction.