“Given the huge move we have had over the short term, things are frothy, and I believe we will see a large correction., the firm’s chief investor told CNBC.
Bitcoin was priced below $55,000 on Wednesday morning, one week after reaching an all-time high of almost $65,000 in the lead up to Coinbase’s direct listing IPO.
“I see us pulling back to $20,000 or $30,000, which is a 50% fall, but with bitcoin, we have seen these types of declines in the past., Minerd said. However, he went on to say it is a part of “the evolution in the long-term bull market., with bitcoin eventually getting to $400,000 to $600,000 per coin.
Minerd shocked investors last year when he predicted his long-range target for the cryptocurrency, citing its scarcity and its value versus assets like gold.
Since then, Bitcoin has had a massive rally that started in 2020, going up almost 90% so far in 2021. With institutional adoption being cited as a key factor fueling its rise. Some companies such as Tesla invested part of their holdings into bitcoin, and firms like Mastercard and Goldman Sachs are pushing into the world of crypto.
This strength and speed of bitcoin’s rise has worried even crypto bulls such as Minerd, who now says a short-term pullback is not just possible, but likely.