Guggenheim CIO Scott Minerd backflips on crypto, calling it ‘Tulipmania’

In full 180 on his stance only a few months in the past, the worldwide Chief Investment Officer of funding big Guggenheim has reacted to the crypto market crash by referring to it as ‘Tulipmania’.

It looks like Elon Musk isn’t the one rich particular person to make a u-turn on their place in direction of Bitcoin and crypto property. As late as February, Guggenheim’s CIO Scott Minerd was calling for a long run Bitcoin price of $600,000 primarily based on Guggenheim’s “fundamental research”.

But with markets plunging Minerd alluded to a bubble along with his feedback earlier right now that claimed that “supply has swamped demand”.

Tulipmania is a phrase derived from a interval in the course of the Dutch Golden Age when costs for some bulbs of the modern tulip reached terribly excessive ranges, after which dramatically collapsed.

Compound Finance founder Robert Leshner argued that Minerd’s tweet was inaccurate:

“Scott is dead wrong, bordering on financial malpractice. The supply of cryptocurrencies (#Bitcoin) and crypto assets ($ETH, $COMP, etc) does not increase as a function of price. That’s like saying the supply of stocks increases, as demand does.”

Other trade consultants additionally chimed in with crypto YouTuber Lark Davis replying with “wasn’t your company going to invest hundreds of millions into Bitcoin? This comment shows you guys must have done almost no research on the topic, shocking.”

Others speculated that the funding firm was making an attempt to push costs down in order that they may purchase extra.

It isn’t the primary time Minerd has flip-flopped along with his stance on crypto property. In January he said that BTC would dump to $20,000 including that it would go no increased than its worth on the time which had simply topped $40,000.

The FUD adopted Guggenheim’s proposed SEC submitting to purchase $500 million in BTC with critics arguing it could have been an effort to keep markets low to facilitate cheaper purchases. These bearish statements additionally got here after a declaration in December through which he stated that the asset should be one day worth $400,000.

In April, Minerd was again along with his predictions of doom and gloom calling for a return to $20,000 after Bitcoin had already blasted previous $50,000. In the weeks that adopted the asset went on to succeed in an all-time excessive of $65,000 earlier than the inevitable correction started.

The pullback as it stands is at the moment at 43.5% with BTC hitting an intraday low of $36,700 in late buying and selling on Wednesday, May 19.

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