- Scott Miners, the CIO of Guggenheim Partners, expects the price of Bitcoin will fall towards the level of $20,000
- Last month only Minerd claimed that the fair value of the token was $4,00,000
- The opposite correlation of BTC with USD is strengthening
The uptrend of Bitcoin began in early October, since then, performing tremendously, it achieved new all-time highs. Scott Minerd, the Chief Investment Officer at the Guggenheim Partners, claims that the price could retrace back to $20,000. In a recent interview with CNBC, Minerd mentioned that though the recent bull run of the price of the flagship cryptocurrency has peaked, it could suffer a significant pullback. However, it is common to observe price pullbacks after such price rallies.
A change in the statement of Minerd is observed
Guggenheim Partners, managing more than $230 billion worth of assets, is trading Bitcoin since the price was near $10,000. Last month, Minerd highlighted that the price of the leading crypto token’s fair value was $4,00,000. After which, last week, he cautioned of a speculative frenzy gripping the crypto market. And on Thursday, in the interview with CNBC, he explained that whenever a doubling of an asset’s price is witnessed in the course of a month, then an apparent setback is observed.
Inverse correlation of Bitcoin and US dollar is strengthening
In the interview, Minerd also shared his view regarding the traditional currency market. Notably, he pointed towards the Federal Reserve’s liquidity boosting bond purchase program as the main reason behind the plunging of USD. Over the last year, the Dollar Index (DXY) sank by 6.83% and currently achieved a 34-month low 89.21. Following the performance, Minerd stated that the trend of the index is for more weakness. However, since Black Thursday, Bitcoin and the Dollar Index have moved in different directions. And it is expected that the opposite correlation among both is strengthening.
The recent price performance of BTC
In the second half of December 2020, Bitcoin went ballistic, when the price soared to $38k from $19k. And from there, earlier this year, the token achieved a new high record by crossing the level of $42k. Such a bullish rally of BTC ended and mainly has been restricted to a range of $30k to $40k ever since. The token is currently trading near the price level of $31,200, with a total market capitalization of $583.85 billion. Indeed, the price is down by 11.10% in the last twenty-four hours.
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