Global Chief Investment Officer of financial services company Guggenheim Partners, Scott Minerd, stated that amid Bitcoin’s parabolic rise that saw new ATHs of over $40k, the asset was “unsustainable in the near term.” He claimed that the digital asset’s price was “vulnerable to a setback”. He added:
“The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”
Bitcoin's parabolic rise is unsustainable in the near term. Vulnerable to a setback. The target technical upside of $35,000 has been exceeded. Time to take some money off the table.
— Scott Minerd (@ScottMinerd) January 11, 2021
On 29 November, Guggenheim Partners filed a document with US SEC to enable the firm’s Macro Opportunities Fund to place millions of dollars in the popular crypto. According to the document the fund would use digital asset manager Grayscale to spend 10% of its net assets on Bitcoin. The doc had stated:
The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly investing up to 10% of its net asset value in Grayscale Bitcoin Trust “GBTC.”
This fund had roughly $5 billion in AUM according to reports. Meaning, the purchase would be worth $500 million, provided that the plans to allocate 10% of the aforementioned amount into the crypto, take shape.
Additionally, crypto influencer and self-claimed economist, Alex Krüger alleged in a subsequent Twitter comment that Scott Minerd wanted users “to dump” their holdings that would allow Guggenheim Partners to purchase Bitcoin when its price is lower, to say the least:
This is the same guy who on December 16 said “Bitcoin Should Be Worth $400,000” and allocating to bitcoin “it’s a little more challenging with the current price closer to $20,000”. Sounds like he wants everyone to dump so his firm may buy the dip.
Given Minerd’s social media influence, it remains unclear if his Tweet could actually encourage investors to sell their assets. At press time, Bitcoin was trading at $33,251 and has been down by 16.9% in the last 24 hours.
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