Bitcoin’s nasty run of corrections is showing no signs of abating — with the world’s biggest cryptocurrency tumbling to lows of $31,445.87 on Thursday.
The 6% fall in BTC’s value came as U.S. stock indices reached record highs following Joe Biden’s inauguration on Jan. 20.
In a warning that will send shivers down the spines of crypto traders, Guggenheim Partners chief investment officer Scott Minerd told CNBC:
“I think for the time being we probably have put in the top for Bitcoin for the next year or so, and we’re likely to see a full retracement back to the $20,000 level.”
This is a stark contrast to some of Minerd’s previous predictions. Just last month, he had told Bloomberg that BTC “should be worth about $400,000” based on how scarce it is — perfectly illustrating how wild the world of crypto forecasts can be.
Right now, it seems some institutional investors are seizing on the opportunity to take profit following on from BTC’s sudden surge to $42,000.
It comes as a new report from eToroX and Aite Group suggests that four key barriers remain for further institutional adoption of crypto assets — including regulatory uncertainty, immature infrastructure, concerns over security issues and reputational risk, and fears that the crypto market cap is insufficient. The authors wrote:
“Until recently, cryptoassets remain insignificant compared to other asset classes in terms of market cap. Institutional participants were looking for substantial growth in this area as well as sustainable market stability. However, the current market growth which has led to a market cap of $1 trillion in a matter of months will no doubt entice an increasing number of institutional investors to take a closer look at investment opportunities in the cryptoasset space.”