In the past, Bitcoin has fallen by 70% to 80% after hitting a new all-time high.
Bitcoin is at risk of falling down to $10,000, according to Guggenheim Investments chairman Scott Minerd.
Speaking to CNBC, he pointed to how the crypto markets tend to crash by about 70% to 80% after hitting new all-time highs.
Such a pattern was seen a few years ago, when a painful bear market saw Bitcoin fall from $20,000 in December 2017 to just $3,545 a year later — a drop of about 82.2% in the space of 12 months.
Bitcoin’s latest record-breaking high of $64,863.10 came in the middle of April. If this reversal was to be replicated, the world’s biggest cryptocurrency could fall as low as $13,000.
At present, we’re currently seeing BTC trade at a discount of 50% to these all-time highs — but Minerd firmly believes that the worst is yet to come. He added:
“Put it this way, I wouldn’t be in a hurry to buy Bitcoin and I don’t see any reason to own it right now. If you’re going to be a speculator, speculate that it’s heading lower.”
Not Everyone Agrees
It is worth noting that Minerd’s predictions appear to change on a regular basis — back in December 2020, he had boldly stated that Bitcoin ought to be worth $400,000.
Others don’t subscribe to the view that BTC is going to fall back toward $10,000, a level that hasn’t been seen since last October.
Mike McGlone of Bloomberg Intelligence has said Bitcoin is “set to shine” in the second half of this year after the crypto markets flushed out “excesses” such as the jaw-dropping surge we saw in Dogecoin’s price.
But zooming in to what’s happening in the markets right now, Bitcoin is facing a battle to protect $30,000 — and is stubbornly clinging on to the $33,000 mark.