Bitcoin Could Fall As Low As $20,000, According To Guggenheim's CIO

Scott Minerd — the chief investment officer at Guggenheim Partners, a financial services firm managing over $310 billion — believes that Bitcoin BTC/USD could soon see a significant downwards movement.

What Happened: Minerd explained on CNBC today that because of the “massive move” that Bitcoin experienced in the short term, “things are very frothy,” and he expects a major correction to hit it soon.

Minerd's comments follow Bitcoin's fall by about 9% from its value on Sunday, with experts suggesting that the news of a power outage in China is to blame.

See also: How to Buy Bitcoin (BTC)

What Else: According to Minerd, Bitcoin "could pull back to $20,000 to $30,000, which would be a 50% decline," a decline on scales that Bitcoin traders have experienced before.

Still, he is bullish on Bitcoin and believes that such corrections are "the normal evolution in what is a longer-term bull market" before the coin reaches between $400,000 to $600,000.

Guggenheim Partner's chief investment officer have previously put a target of $400,000 for Bitcoin at the end of 2020.

See also: Here Are Five Small Cap Cryptocurrencies With High Growth Potential: BitTorrent, THORChain, Avalanche, Kusama, Huobi Token

At the time, he explained that Bitcoin’s scarcity combined with “rampant money printing” by the Federal Reserve would result in such aggressive growth.