Scott Minerd, CIO of Guggenheim Partners, a financial services provider, believes the current institutional demand for Bitcoin is not big enough to keep the price above $ 30,000.
Minerd comments came just days after he predicted that the BTC price will follow the $ 20,000 levels.
The Finance Director made his comments during an interview with Bloomberg and used the following statements:
“Currently, there is no corporate demand reality to support 35 thousand dollars or even 30 thousand dollars. I don’t think the current investor base is large enough to support this kind of assessment. ”
Minerd thinks Bitcoin is still a reliable asset class in the long run. He also said that the best cryptocurrency in the long run will reach new heights, but the downward pressure is more in the short term, which is not unusual. As we mentioned above, Minerd also stated in a statement to CNBC on January 20 that the BTC price could be pulled back to $ 20,000.
However, Bitcoin has seen a rapid rise from $ 24,000 to $ 42,000 in 20 days in recent weeks. This bullish momentum was attributed to overbought by institutions leading to low supply, and later retail investors joined the rally. However, the momentum ultimately weakened in the first week of 2021, dropping the Bitcoin price below the $ 35,000 level. Corporate entry may not be big right now, but nonetheless, those in it are buying more bitcoin every day. People like Grayscale and MicroStrategy and even the Marathon Group made a purchase in the last fall.
The expiry of the upcoming $ 4 billion worth of Bitcoin options contracts is also believed to be in favor of Bitcoin. While the leading cryptocurrency is trying to maintain its position above $ 30,000, we will see if it can break the $ 40,000 level again.