As bitcoin struggles to kickstart yet another record-breaking rally, Scott Minerd, the CIO at Guggenheim Investments says this could be down to the inadequate institutional support. According to Minerdâ€™s assessment, this lack of sufficient institutional investor support means it will be hard for bitcoin to trade above $30,000.
The CIO, however, thinks the viability of the crypto as â€œan asset class is still very likely.â€ In a short video, Minerd chronicles bitcoinâ€™s rise and how the crypto initially did not have a large enough market capitalization to attract institutions.
However, after the crypto rose to $10,000, perceptions changed. The CIO explains:
Minerd, who has previously predicted a maximum price of $400,000 for the BTC, says the current investor base is not big enough to support a valuation above $30,000.
Not Everyone Agrees
However, not everyone agrees that bitcoin, which grew by more than 300% in 2020, will remain stuck at current prices. Michael Geiger, the CEO at a financial brokerage firm Libertex, disagrees with Minerdâ€™s view. Geiger explains to News.bitcoin.com that â€œan overextension does not mean that bitcoin would permanently stay below the figure.â€ The CEO adds:
Meanwhile, despite Minerdâ€™s comments, bitcoin has dropped below $30,000 only twice since January 1, 2020. At the time of writing, the crypto appears to have resumed its rally after it went past $37k handle for the first time since January 20.
Do you agree with Minerdâ€™s prediction that BTC will struggle to stay above $30,000? You can tell us what you think in the comments section below.
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