- Scott Minerd of Guggenheim stated that Bitcoin’s surge is unsustainable and investors should now consider arbitrage.
- Global Chief Investment Officer Tweet Early Monday morning: “Bitcoin’s parabolic rise is unsustainable in the short term. It may suffer setbacks. The target technical upside of $35,000 has been broken. Now it’s time to spend some money off the table.”
- On Monday, Bitcoin plunged 10% to $31,590. After hovering around $42,000 last week, it lost $10,000 in value.
- Watch bitcoin transactions here.
Scott Minerd of Guggenheim said that Bitcoin’s recent record surge is unsustainable and investors should now consider arbitrage.
The global chief investment officer tweeted in the early hours of Monday morning: “Bitcoin’s parabolic rise is unsustainable in the short term. It may suffer setbacks. The $35,000 target technology upside has been exceeded. It’s time to spend some money off the table. Take it away.”
Bitcoin broke through the $35,000 level on January 5 and soared to a record high of $41,946 last Thursday. Now, cryptocurrencies are taking a hit. On Monday it plunged 10% to $31,590. The token was the biggest two-day drop since March, falling more than 21% on Sunday and Monday.
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In December of last year, Minerd stated that based on its scarcity and value relative to gold, Bitcoin should be worth $400,000. Guggenheim Partners issued his comments one month after filing a document with the US Securities and Exchange Commission (SEC) to invest up to $530 million in Bitcoin through the Grayscale Bitcoin Trust. The document will take effect on January 31.
Guggenheim stated in the U.S. Securities and Exchange Commission (SEC) filing that it still believes this “highly volatile” token has some risks. The company stated that due to regulatory changes, changes in user preferences for competing tokens, or a “trust crisis” in the Bitcoin network, the value of the cryptocurrency “may drop sharply.”