Institutional large-cap investing in Bitcoin was one of the biggest drivers of this year’s exponential bull rally, and investors like Michael Saylor just can’t get enough. However, there are also those who are now disillusioned with cryptocurrency and conclude that it is not all it was meant to be.
Scott Minerd, the chief investment officer of Guggenheim Investments, recently announced that he is no longer invested in the top digital asset after making extremely optimistic forecasts for BTC earlier this year.
In an interview with CNBC, the CIO announced its exit from the Bitcoin market caused by a lack of understanding of the asset. He said,
“The only thing I learned as a bond trader years ago is that if you don’t understand what is happening, you get out of the market. So now the discipline is telling me that I don’t quite understand that. “
Late last year, Guggenheim filed an amendment with the U.S. Securities and Exchange Commission (SEC) to invest around $ 500 million in the cryptocurrency through the Grayscale Bitcoin Trust (GBTC). Shortly thereafter, the CIO began making very bullish predictions for BTC.
In a Bloomberg interview last December, Minerd commented that “his company’s interest in Bitcoin is tied to Fed policy and rampant money printing,” adding that Bitcoin is worth around $ 400,000 over the long term would.
Later in February of that year, the investor raised that bar to $ 600,000 based on Bitcoin’s fundamentals such as scarcity and similarity to gold.
However, after the market crash in May, Minerd turned extremely bearish on the virtual currency in the short to medium term, stating that Bitcoin’s price would be in consolidation mode for a few years before going up.
He had also predicted that Bitcoin would bottom out at around $ 10,000-15,000, a price point it hasn’t hit since last year. Minerd also went into this price prediction for June in the last interview and stated:
“We got into it for a long time, we sold, it went back to what I thought, and after we looked at it we thought, you know, we’re probably going to go deeper. Well, we don’t have that, so we’re not in. “
During the interview, the investor also stated that if someone had invested $ 1,000 in the Shiba Inu meme coin in February, their investment would be worth around $ 2.1 million today. Shiba Inu has seen an extended price rally recently, up 261% last month and 28621 577% last year total.
Minerd’s recent comments came at a surprising time, as the king coin market only recently turned bullish again after a long period of price devaluation. The asset’s price was up nearly 30% in October alone, due to an upcoming ETF approval that wasn’t confirmed until Monday.
While it is hard to speculate what might have caused Minerd’s change of heart, a number of institutional investors are expected to flock to the BTC market after it gains the legitimacy of traditional finances.