“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,” the firm’s global chief investment officer told CNBC’s “Worldwide Exchange.”
“I think we could pull back to $20,000 to $30,000 on bitcoin, which would be a 50% decline, but the interesting thing about bitcoin is we’ve seen these kinds of declines before,” Minerd said. However, he said he thinks it’s part of “the normal evolution in what is a longer-term bull market,” with bitcoin prices eventually reaching between $400,000 to $600,000 per unit.
Minerd turned heads late last year when he first shared his long-range price target for bitcoin, citing its inherent scarcity — only 21 million bitcoins will ever be created — and its value relative to assets such as gold. Those remarks in December fell on the same day the digital currency eclipsed $20,000 for the first time ever.