During his recent interview on CNBC’s “The Exchange” with Brian Sullivan, Guggenheim Partners Chief Investment Officer Scott Minerd said that he really meant his uber-bullish $400,000 Bitcoin target.
However, Minerd did warn his listeners that the market was turning into “a bit of a frenzy”:
No, no, I mean it. It’s really interesting. It was a passing comment in an interview. And, to be honest with you, I could have said the United States government is bankrupt, and the Federal Reserve is insolvent, and Bitcoin is going for $400,000 some day, and they would just talk about Bitcoin, which is telling you something. It’s turning into a bit of a frenzy.
Minerd says it’s a frothy market
Minerd offered his pie-in-the-sky Bitcoin target in mid-December when the largest cryptocurrency was trading below $23,000 while comparing it to gold:
Bitcoin has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.
Since then, the flagship coin soared 85 percent in less than a month, peaking at $42,049 on Jan. 8. After a long-overdue retracement, Bitcoin once again reclaimed the $40,000 level on Jan. 14.
Right on the verge of the major correction, Minerd tweeted that the Bitcoin rally was “unsustainable” in the short-term.
The head of one of the fastest-growing investment management firms on Wall Street is still convinced that the market is frothy right now, with eToro struggling to process buy orders because of an outpouring of demand.
Guggenheim is yet to get into Bitcoin
Economist Alex Krüger recently opined that Minerd deliberately started making bearish comments about Bitcoin to purchase it cheaper:
His carefully drafted words may make the unaware think Guggenheim is taking profits. But they haven't yet bought.
In late November, Guggenheim filed with the U.S. Securities and Exchange Commission to invest up to $530 million into the shares of Grayscale Bitcoin Trust. Its proposed amendment will become effective on Jan. 31.