The growing price of bitcoin hit an unexpected rise in the last few months with the peak hitting $60,000. After touching a year’s low of $27,734, Bitcoin reached an all-time high of $64,841 in April. Wall Street started warning that the value can now fall off anytime.
Scott Minerd, chief investment officer at Guggenheim Global suggested that the value of the popular cryptocurrency has spiked too far in a short period with a rise of over 90 percent of the value only in the first four months of 2021.
“Given the massive move we’ve had in bitcoin over the short run, things are very frothy, and I think we’re going to have to have a major correction in bitcoin,” Minerd said to CNBC.
According to him, the value could pull back to $20,000 to $30,000 per Bitcoin, this would be a fall of 50 percent in the present price of the cryptocurrency. In the history of Bitcoin, such falls were seen before. However, he adds that the fall is a part of normal evolution but the value of the coin will eventually reach between $400,000 to $600,000 per unit.
In the last few years, the value of Bitcoin has seen different highs and lows. Bitcoin’s nature of hitting a new peak and then low in just a few weeks made it hard for even experts to predict its future. Despite the best investors trying to predict the price, this cryptocurrency always surprised them.
But the recent news of acceptance of the Bitcoin future seems to be stable. Tesla is now accepting Bitcoins as a mode of payment, also Mastercard and popular investment banking company Goldman Sachs accepting it.
Such acceptance of this cryptocurrency has been a major factor in increasing the price. Began in 2020, Bitcoin has seen a rise of over 90 percent in its value. Seeing this spike at this rate in a short time many experts argue that the currency is in a bubble and will bust very soon.
Fall of 80%
Back in 2017, Bitcoin grew its price in a similar manner and shocked many experts who didn’t expect such heights from the currency. Soon the value started falling and lost 80 percent of its value, this period later became known as the “crypto winter”.
Facing such a fall in the past and seeing growing of Bitcoin supply by 2 percent each year due to the increase in demand, many experts who accept cryptocurrency as the future suggests the fall of the price once bubble bust may not be a deciding factor for the future.