Bitcoin skid rings alarm bells as money manager says retreat to $ 20,000 ahead

Bitcoin prices slid again on Thursday, and the downturn may trigger some short-term bearish alarm bells with the asset already technically in a bear market after seeing record highs earlier in January.

Values ​​for the world’s most prominent cryptocurrency were off more than 10% around Thursday’s lows at around $ 31,000, with the crypto shed 12% over the week, according to FactSet data.

BTCUSD bitcoin single,
-7.56%
Trading on CoinDesk was priced at $ 32,357, off 7.5%, at the last check.

But investors were taking into account recent comments made by financial market participants, which may also be helping to hit prices around.

Indeed, Guggenheim Partners’ Chief Investment Officer, Scott Minerd, a recent proselyte of traditional Wall Street instruments into cryptos, told CNBC on Wednesday that he believed bitcoins could stage a retreat back to $ 20,000, having peaked at a record high $ 41,962.36 on Jan. 7, back. in CoinDesk.

“For the time being, we have probably given a bitcoin peak for the next year or two,” Minerd told the business network.

Minerd also told Bloomberg News, weeks ago, that his price forecast for bitcoin was $ 400,000.

Since its recent peak, bitcoin has shrunk by at least 20%, meeting the commonly accepted definition for a bear market in an asset.

The fall in bitcoins has also taken it below its near-term moving average, the 20-day exponential moving average, or EMA, at $ 32,544, according to FactSet data.

EMAs, like simple moving averages, are sometimes used by technical analysts to measure bearish and bullish short-term trends in an asset, and can be useful for bitcoins that are prone to powerful swings on a daily basis.

Hodlers – a popular spelling of the word “hold” or “holders” in the crypto community – tends not to focus on the short-term movements in cryptos and holding the asset in the long term. And it is often difficult to peg a specific shift in virtual assets to any related news item.

However, marketers have been processing the dramatic moves by virtual assets in recent weeks and months as well as assessing the outlook for bitcoins and other assets in the Biden administration.

Earlier in the week, Janet Yellen, President Biden’s nominee for U.S. Treasury Secretary, said she would consider curtailing digital assets, saying she feared using it for money laundering and other abuse.

Moreover, some advocates worry that Gary Gensler, former head of the Commodity Futures Trading Commission and professor of cryptocurrencies at the Massachusetts Institute of Technology, could scrutinize bitcoin regulation, as Biden’s choice for Chairman of the Securities and Exchange Commission.

Still, many investors often view the disadvantages of bitcoin as opportunities to increase their stakes in the speculative market, often described as one that reflects many of the characteristics of an asset bubble.

Guggenheim Minerd is one of several institutional investors who have taken notice of bitcoin’s price rally and sought exposure to the blockchain-backed asset.

Most recently, a public filing revealed that BlackRock, the world’s largest money manager, is about to dip its toes into the world of cryptoassets and buy the future of bitcoin BTC.1,
-7.72%.

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