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 Minerd’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 “an asset class is still very likely.” In a short video, Minerd chronicles bitcoin’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:
When we had bitcoin at $10,000, it was pretty easy to see that there was a clear path to $20,000.Once it went past $20,000 you could definitely see based on technical work how you could get to $35,000 or even higher.
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 Minerd’s view. Geiger explains to News.bitcoin.com that “an overextension does not mean that bitcoin would permanently stay below the figure.” The CEO adds:
Eventually, bitcoin would move above the figure even in the lower part of the logarithmic regression band, provided that the asset still holds any meaningful value.
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Meanwhile, despite Minerd’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 Minerd’s prediction that BTC will struggle to stay above $30,000? You can tell us what you think in the comments section below.