Bitcoin (BTC) Price Could See a 'Major Correction' to $20K to $30K, Before Continuing Higher - Guggenheim's CIO

April 22, 2021 9:09 AM EDT

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Bitcoin (BTC) looks "very frothy," a state that could pave the way for a major correction in the price action, according to Scott Minerd, Managing Partner and Global Chief Investment Officer at Guggenheim Partners.

Minerd believes that the one-way rally in Bitcoin has gone too far, too fast. Bitcoin price hit a record high near $65,000 last week, before correcting about 20% from these highs.

“Given the massive move we’ve had in bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in bitcoin,” he told CNBC.

“I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd added.

However, Minerd is still bullish long-term on Bitcoin as he believes the world’s largest cryptocurrency could eventually go to a $400,000 - $600,000 range.

Minerd dropped a bombshell last December when he shared a $400,000 price target for BTC on the back of the scarcity and relative valuation to assets like gold.

Bitcoin price is 2.5% up today to return trading near the $55,000 mark.

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