2021-1-11 20:45 |
In 2018, the reoccurring “meme” in crypto space was that institutions were coming to accumulate Bitcoin, to save the then-volatile market and set it on a path of growth.
In 2020, this meme became reality as prominent fund managers and corporations began to accumulate Bitcoin. It began with Paul Tudor Jones, a legendary macro hedge fund manager, which was then followed by a number of other Wall Street household names.
Scott Minerd, the global CIO of Guggenheim Investments, became the latest fund manager to join the Bitcoin craze in November and December. He told Bloomberg in December that considering Bitcoin’s scarcity and previous growth phases, the cryptocurrency could hit $400,000 overtime.
This represented one of the most bullish statements an active money manager has ever made about Bitcoin.
Yet in a reversal to that sentiment, at least in the short term, Minerd has said that it may be time to take some money off the crypto table.
Taking money off the tableAmid the correction during Sunday evening, during which BTC fell from $40,000 to $34,000, Minerd said that Bitcoin is “vulnerable to a setback” because the cryptocurrency has entered an unsustainable growth phase:
“Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”
Bitcoin's parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.
— Scott Minerd (@ScottMinerd) January 11, 2021
This is the third time ever Minerd has mentioned Bitcoin on his Twitter account. The last time was in November 2017, when he said that the cryptocurrency market’s correction “is not over.”
While Minerd is a respected money manager, many in the crypto space have been taken aback by his comments.
Dan Tapiero, a macro investor that has taken a focus on cryptocurrency, responded to Minerd’s comment with a question mark.
Others also noted that this may be an attempt to shake out weak hands before Bitcoin moves higher.
The cryptocurrency regularly faced strong 20-30 percent corrections in previous bull markets prior to moving toward new all-time highs.
Macro trends still bullish for BTCWhile Minerd may be bearish on bitcoin over a short-term basis, the macro trends for this market remain bullish.
In his interview with Bloomberg in which he conveyed the $400,000 prediction, he highlighted that the cryptocurrency has a long-term fundamental framework that indicates there is macro growth potential:
“It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
To contextualize this, incoming President Joseph Biden is demanding trillions of dollars worth of additional stimulus to bail out the American economy. Many in global markets expect this to drive the U.S. dollar lower and drive alternative assets higher.
The post Wall Street fund manager that called for $400,000 Bitcoin tells followers to “take money off the table” appeared first on CryptoSlate.
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