More Fear, Uncertainty and Doubt (FUD) is coming from the influential persona who said Bitcoin would be worth more than half a million dollars one day. His stance on Bitcoin changed 180-degrees just a few months ago, the global Chief Investment Officer of investment giant Guggenheim has reacted to the crypto market crash by referring to it as ‘Tulipmania’.
Elon Musk is not the only high-net-worth-individual to swiftly changed their position towards Bitcoin and alternative crypto assets. But with markets dropping recently Scott related it to a bubble with his comments earlier today that claimed that “supply has swamped demand”.
Tulipmania is a an analogy derived from a period during the Dutch Golden Age when prices for bulbs of the fashionable tulip reached extraordinarily high levels, and then dramatically collapsed.
On the other hand, the Compound Finance founder Robert Leshner argued that Minerd’s tweet was inaccurate:
“Scott is dead wrong, bordering on financial malpractice. The supply of cryptocurrencies (#Bitcoin) and crypto assets ($ETH, $COMP, etc) does not increase as a function of price. That’s like saying the supply of stocks increases, as demand does.”
Other experts also chipped in with “wasn’t your company going to invest hundreds of millions into Bitcoin? This comment shows you guys must have done almost no research on the topic, shocking.”
Others speculated that Scott’s company was trying to push prices down so that they could buy more.
It is not the first time Scott Minerd has changed his stance on crypto currencies. In January he claimed that Bitcoin will dump to $20,000, adding that it would go no higher than its price at the time which had just reached $40,000.
After failed attempts to bring down negative sentiment to Bitcoin, in April, Scott was back with his predictions of doom by calling the drop to $20,000 shortly after Bitcoin blasted past $50,000. In the weeks that followed the asset went on to reach an all-time high of $65,000 before the current correction began.
The lowest point of the pullback is currently at 44% with BTC hitting an low of $30,000 in late trading on Wednesday, May 19 on Binance. At the time of writing, Bitcoin bounced to $42,092.
Read more on the recent drop here: Bitcoin Fell Below $40,000 as potential money bubble sounds the alarm