August 10, 2021
Why Bitcoin Cannot Remain Above 30K?
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Why Bitcoin Cannot Remain Above 30K?

These days Bitcoin market direction in under discussion by many analysts and experts. Although some believe that BTC price has the potential to grow over $100K, some believe that a significant correction is on the way. Scott Minerd, Guggenheim CIO, predicted a bearish market for Bitcoin in short term. In fact, he believes that institutional investment is not enough to support BTC in order to stay above 30K. In this article we are going to take a deeper look that why Bitcoin cannot remain above 30K?

 

Institutional demand is not enough

Guggenheim is a financial services firm. Recently, the Chief Investment Officer of the firm had an interview with Bloomberg television. He stated in his interview that institutional demand and investment in BTC market is not significant enough to sustain the price above 30K.

Scott believes that Bitcoin is still a valuable asset, which can profit investors in long term. Although Bitcoin could hit its all-time-high ($42,000) on January 8, the price corrected and declined by 27%. Actually, this downtrend signals a bearish market, which may continue.

New bearish trend will continue

Consequently, Scott believes that the new bearish trend will continue to decline BTC price. He added that the market is full of small investors at the time, who are looking to make a profit from current price growth and fluctuations. In addition, there are not enough institutional investors to increase liquidity in the market.

Minerd claimed in an interview with CNBC that BTC price will fall to $20,000. In fact, he means that BTC price will experience a 50% correction, which happened several times in the history of Bitcoin.

Why Bitcoin Cannot Remain Above 30K?; The market price cycle will repeat

The last time was in March 2020 that Bitcoin price corrected by over 50%. At that time, the price declined from $10,000 to $5,000 in just three weeks. However, Guggenheim still believes that Bitcoin could hit $400,000 in long term.

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