BTC Doesn’t Hold Enough Demand To Stay Above $30K Says Guggenheim

Scott Minerd stands as the Chief Investment Officer (CIO) of Guggenheim. Recently, the man has made yet another bearish prediction when it comes to Bitcoin and its price outlook. In his eyes, there simply isn’t enough institutional demand for Bitcoin to keep the asset above the $30,000 mark.

Still Bearish For Bitcoin

Minerd gave this opinion by way of Bloomberg Television. He explained that the institutional-grade investor base of Bitcoin simply isn’t there to sustain the ongoing price actions. Alongside this, Minerd is convinced that this ongoing downward pressure isn’t going to stop anytime soon, but also stated that squeezes like these aren’t that uncommon.

He explained that small-time investors see these new market trends, this momentum in trading, and get all excited for it. They see this momentum as a way to gain money, Minerd explained. He warned that it’s this same kind of excitement that is typical as one starts to get close to a bubble pop, however.

Bullish For The Long Term

Minerd had also given a bearish prediction to CNBC, back on the 20th of January, 2021. Back then, Minerd speculated that the Bitcoin would see a full retrace back to the $20,000 range.

Should this type of correction play out, it would mean Bitcoin would lose over 50% of its value. The problem is, this isn’t only possible, but it has happened a number of times within the space. The most memorable event such as this would be back in March, during the dreaded “Black Thursday” event, where the asset went down to $5,000 from $10,000.

It should be noted, however, is that Guggenheim is only bearish in the short term. The long term outlook has the investment savings firm speculating a $400,000 price tag in the future, saying as much back in December of 2020.

"Our fundamental work shows that Bitcoin should be worth about $400,000," says Guggenheim's Scott Minerd https://t.co/9QyOWyYAVA pic.twitter.com/uojQqaKPia

— Bloomberg TV (@BloombergTV) December 16, 2020

Bitcoin Goes Big In All Ways

As Bitcoin looms ever-closer to that support level of $30,000, one must also remember the looming expiration of BTC Options coming closer, some $4 billion in total. This, according to analysts, could play in the bulls’ favor.

In the end, every Bitcoin bull only hopes that Bitcoin only rises and never falls, but the volatility of Bitcoin makes that impossible. The asset’s history is filled with violent corrections followed by new all-time highs, to the possibility for such a correction as Guggenheim predicted is not only plausible but entirely possible. In the end, time will tell how Bitcoin operates, but here’s hoping for more profits to be made regardless.