As at the start of this article, Bitcoin has stabilized a little, and the digital asset is trading a little bit above the $30,000 price mark. Bitcoin has had to endure a fair share of the volatility in the digital asset market as the bulls and bears have taken turns to dictate the pace of the market in the past few days.
When investors thought that Bitcoin could do no wrong when it came to dips, the digital asset saw what would best be described as one of the biggest declines in history last week. With the latest decline run, experts and analysts are starting to rethink their previous prediction during the bull run period.
Minerd faults the surge period of the digital asset
One of those who were at the forefront of predictions during the bull run and has now begun to have a rethink is the investment officer of the popular firm, Guggenheim Partners, Scott Minerd. In a recently granted interview, Minerd mentioned to CNBC that he has been expecting the bull run to end in the last few weeks officially, and he would not be perturbed if it did.
After the interview, Bitcoin ran as fast as it could in a backward fashion, with the digital asset losing almost half of what it sold for at the time in question. Arguing his analysis, Minerd mentioned that things like this are bound to happen if an asset doubles its previous price in a concise space of time.
He mentioned that the price correction or decline run would eventually see the digital asset return back to $20,000, where it would rest. Bitcoin has seen something of this similar fashion in the early part of 2020. The digital asset saw a huge decline run that saw it move from the $7,000 region to rest around $3,500, which was largely blamed on the coronavirus pandemic.
Guggenheim recently made a $5 billion investment in Bitcoin
One surprising aspect of this whole analysis is that someone from Guggenheim Partners predicts a bearish run for the digital asset on the back of a large investment that the company just made in the asset. After Microstrategy and Stone Ridge announced their various investments in the leading digital asset around the late part of last year, Guggenheim Partners saw it as an opportunity to diversify its funds and pooled about 5% of its net worth, which was worth about $5 billion into the digital asset.
Even with the investment, the company would be saved of some of the risks involved in trading the digital asset because it invested through Grayscale Trust. Even though the company was safe in its investment in the digital asset, it did it when Bitcoin was trading around $20,000. An earlier analysis from Minerd suggested that Bitcoin could go well and top over $400,000 in the coming years.
If his latest comments are anything to go by, then the digital asset would be ready to see red in the coming days, and traders and investors would have to be smart about any investment that they make on the market. Everyone is waiting to see if Guggenheim Partners would succumb to what Minerd has said and cash in on their investments.