The cryptocurrecy prices, which have been on a rapid rise lately, will be corrected soon, according to a growing number of experts. “Given the massive move we’ve had in bitcoin over the short run, things are very frothy,” the CIO of Guggenheim Partners Scott Minerd who is considered as a cryptocurrency optimist said on CNBC on Wednesday (local time). “I think we’re going to have to have a major correction in bitcoins.”
“I think we could pull back to $20,000 to $30,000 on Bitcoin, which would be a 50% decline,” he added.
However, he further stated that these kinds of declines have been seen before. He said it is part of the normal evolution in what is a longer-term bull market, which means short-term corrections are necessary for even a greater increase. He believes that Bitcoin prices will eventually reach between $400,000 to $600,000 per unit.
Others also say that Bitcoin prices entered the bearish market. MarketWatch reported that Bitcoin recently fell below its 50-day moving average since at least 2014, quoting a report published by Bespoke Investment Group. Investment experts use moving averages as barometers of bullish and bearish trends in an asset. Pankaj Balani, CEO of Delta Exchange, said that a sustained breach of the short-term price could lead to a slide to around $40,000.
Governments and central banks around the world are issuing warning messages as Bitcoin prices fluctuate by thousands of dollars per day. “Cryptocurrencies are really vehicles for speculation. No one is using them for payments,” said Chair of the Federal Reserve Jerome Powell last week. “Cryptocurrencies are hard to determine appropriate prices and their price volatility is very high,” said Governor of the Bank of Korea Lee Ju-yeol during a press conference on April 15. “Other countries are also concerned about them.”
Jae-Dong Yu firstname.lastname@example.org