As Bitcoin ticks downward from explosive rallies at the beginning of this year, one executive’s dual (and dueling) prophecies are raising eyebrows and causing consternation for those reading the tea leaves.
Cointelegraph reports today on two Bitcoin predictions from one person, Scott Minerd of Guggenheim Investments, who has said he believes that Bitcoin should be worth $400,000, and will scale those heights eventually.
Helen Partz also reports on a more recent short-term prediction by Minerd, following some Bitcoin retracement, namely: that he expects the coin’s value to drop as low as $20,000 in the near term. For context, Partz notes current market indicators:
“The selling pressure on Bitcoin mostly came from Asia in the first two weeks of January,” Partz writes, “while the United States market also started to see weakness amid a correction on Jan. 19.”
Interestingly, Minerd still stands by his long-term prediction of $400,000, which makes his latest short-term prediction somewhat a moot point to buy and holders. Others looking at medium-term trades might be confused, though.
While sophisticated analysis could hold both of these views at once, traders can be forgiven for shaking their heads a bit at Minerd’s seemingly schizophrenic value advice.
However, a corresponding strategy would be to unload Bitcoin now and buy on the dip, which, given any accuracy in Minerd’s projections, would be a considerable dip indeed – right now, Bitcoin stands around $32,000. If Minerd was correct, and a trader followed his advice to the T, that investor would not only avoid a loss of 25%, but would also enjoy a further gain of 2000%. That’s a lot of pizza!
Minerd has also been delivering broader sorts of prophetic screeds, tweeting, for example, about the coronavirus:
“The economic trajectory suggests a post-pandemic period of prosperity similar to the one experienced in the early 1960s rather than the 1920s after the Spanish flu.”
The scryer’s long-term view on BTC is similarly rosy; however, if we’ve learned anything from Bitcoin volatility, it’s that anything can happen at any time. Do your own research and plan accordingly.