Investment giant Guggenheim has reiterated the warning that Bitcoin (BTC) will drop to $ 20,000.
In an interview with CNBC on April 20, Scott Minerd again warned that Bitcoin could lose half of its value as a result of withdrawals.
The common goal of Bitcoin bears is to emerge
“Given the tremendous transformation that has happened in Bitcoin in the short term, it has become very frothy,” Miner said on the network.
Bitcoin lasted around $ 55,000 on April 21 and jumped $ 52,000 during the recent withdrawal from the 2021 bull market.
For Minerd, which last claimed in January that BTC / USD would return to $ 20,000, such an event would be part of the ups and downs of the normal market cycle. According to him, his long-term forecast of $ 400,000 per bitcoin remains valid.
“I think we can go back to between $ 20,000 and $ 30,000 in Bitcoin, which is a 50% drop, but what is interesting in Bitcoin is that we’ve seen similar declines before,” he continued.
However, Minerd, who previously sparked controversy over his BTC price comments, was not alone in his bearish short-term outlook. As Cointelegraph reported, JPMorgan Chase analysts sounded the alarm this week, focusing on the futures markets.
Perfectly average BTC draw
In response, Bitcoin advocates dismissed any notion that big losses were inevitable, citing a host of factors, including strong online indicators.
“Wrong,” Anthony Pomplano, co-founder of Morgan Creek Digital, told Minerd.
On January 20, the CEO announced that Bitcoin prices had peaked before the end of the year. Since then, BTC / USD has doubled.
“In 2017, the average correction in BTC Bull Market took 16 days. The popular Twitter account Rekt Capital indicated on today’s price action that the last drawdown lasted only 7 days.”
“So while corrections usually last for several weeks … they are very short in the general pattern of the general beef market.”