"Sharp Fluctuations Since Late 2017... Many Bubbles"
"Expect Long-Term Rise to $600,000 After Adjustment"
Scott Minerd Guggenheim Partners Chief Investment Officer (CIO) [Image source= Guggenheim Partners website]
[Asia Economy Reporter Hyunwoo Lee] Scott Minerd, Chief Investment Officer (CIO) of Guggenheim Partners and a well-known cryptocurrency optimist on Wall Street, warned that Bitcoin could undergo a significant correction due to its rapid short-term surge, potentially plummeting to the $20,000 level, less than half of its current price.
On the 21st (local time), CIO Minerd stated in an interview with CNBC, "Bitcoin has surged too quickly in a very short period, resulting in a highly inflated bubble," and warned, "It could drop to between $20,000 and $30,000 per coin, which is less than half of the current price." He added, "This kind of sharp decline has been occurring continuously since the end of 2017."
Previously, Bitcoin's price soared to an all-time high of around $65,000 per coin on the 14th, buoyed by the news of Coinbase, the largest U.S. cryptocurrency exchange, listing on the Nasdaq market, but has since fallen to around $53,000.
On the 18th, negative news such as regulatory moves by Turkish and Indian authorities to control cryptocurrency trading and a power outage at a Bitcoin mining site in China caused most cryptocurrencies to plunge. Dogecoin, which had been performing well, dropped to the 30-cent level within two days, falling more than 43% from its previous peak.
Domestic prices have also fallen significantly. According to Upbit, a domestic cryptocurrency exchange, Bitcoin's price surged to 81,575,000 KRW per coin on the 14th but is currently trading at 68,834,000 KRW, down 15.6%. Dogecoin, which had risen to 520 KRW per coin the previous day, plunged 25.2% in one day to 389 KRW. The price drop was driven by expectations of stricter domestic regulations, including news that financial authorities will begin special crackdowns on domestic cryptocurrency exchanges starting in June.
However, CIO Minerd emphasized that despite this short-term correction, Bitcoin's medium- to long-term upward trend will continue. He stated, "This should be seen as part of the evolutionary process for the medium- to long-term upward trend," and stressed, "In the medium to long term, Bitcoin could reach between $400,000 and $600,000 per coin."
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