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According to Guggenheim, institutional demand would be insufficient to keep Bitcoin above $30,000.

According to Guggenheim, institutional demand would be insufficient to keep Bitcoin above $30,000.

The short-term value of Bitcoin has been reassessed by Scott Minerd, CIO of Guggenheim, an international financial services investment and advisory firm.

 

Indeed, it revealed a completely different price outlook for Bitcoin, stating that the massive entry of institutional investors in this digital adventure would be insufficient to maintain assets above $30,000.

 

For example, the investment director of the financial services company also told Bloomberg Television that institutional demand would not be large enough to maintain current prices. He says: “At the moment, the reality of institutional demand that would support a price of US$35,000 or even US$30,000 is simply not there. I don’t think the investor base is large enough and deep enough to support that kind of valuation”.

 

However, he goes on to support the idea that Bitcoin is still a viable long-term asset class.

 

In addition, since its record high of $42,000 on January 8, Bitcoin has dropped 27% at current prices of approximately $30,600. This shows a strong downward trend that continues.

 

However, the Guggenheim executive justifies this downward pressure by its non-singularity. Affirming that it is quite common to see this kind of downward pressure, and that this would be explained by the fact that not all investors are necessarily looking for long-term value.

 

Minerd also told CNBC on January 20 that he expected prices to return to $20,000. That said, if this scenario unfolds as it does, it would result in a correction of more than 50%. This will hardly come as a surprise as it has happened many times in previous market cycles.

 

However, it should not be forgotten that the last significant drop in bitcoin was about half of its original value: it went from just over $10,000 to less than $5,000 in just three weeks.

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However, Guggenheim maintains its position on Bitcoin’s long-term prospects. Minerd stated in December that the price of Bitcoin will continue to rise. Going even further, he even mentioned a realistic price target of around $400,000, depending on the company’s core business.

 

Finally, while Bitcoin is fast approaching this $30,000 level of psychological support, the impending expiration of $4 billion of BTC options could allow for an upward revision, according to analysts.

Lire aussi > LUXURY PERFUMERY : IN THE GAUCHY FACTORY, 40 BOTTLES ARE PRODUCED PER MINUTE

 

Photo à la Une : © Presse

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