Guggenheim's Scott Minerd, who called bitcoin's recent crash, warns about what comes next

Published Tue, May 25 20219:59 AM EDTUpdated Tue, May 25 20213:03 PM EDT

Guggenheim Partners' Scott Minerd , who warned last month about a bitcoin collapse, predicts the world's biggest cryptocurrency is poised for further decline. "You can afford to be patient here. There's more to go," Minerd said in an interview that aired Tuesday on CNBC's "Worldwide Exchange." On April 21, when bitcoin was around $55,000, Minerd said on CNBC it looked "very frothy." At time time, the Guggenheim global chief investment officer said bitcoin could plunge 50% in the near term to between $20,000 to $30,000. He was right. Last Wednesday, bitcoin tanked to just above $30,000, losing more than half its value in a little more than a month. On April 14, it hit an all-time high near $65,000 per unit. Reflecting on his prescient bitcoin call, Minerd told CNBC the crypto's exponential move over the past year from about $9,000 was not sustainable. "The other problem is the proliferation of competing currencies which, is actually taking some of the capital away from those who invest in bitcoin normally and allocating to other coins," he added. Bitcoin has recovered somewhat since last week's nosedive. It traded around $37,000 on Tuesday, one day after getting a pop on Tesla CEO Elon Musk 's tweet that he spoke to bitcoin miners regarding the environmental impact of their energy-intensive operations. A week before last Wednesday's crash, Musk said Tesla would stop accepting bitcoin as payment for its electric vehicles due to concerns about mining sustainability. The bitcoin on Tesla's balance sheet was worth nearly $1.6 billion as of Tuesday morning, according to bitcointreasuries.org , a website that tracks companies' holdings in the digital currency. In the "Worldwide Exchange" interview, Minerd called last week's bitcoin selling a "washout." He said that like the 1987 stock market crash and the dot-com bubble about a decade later, it's going to take a while for the crypto market to stabilize. "Bitcoin, I think, is the survivor. There will be others that are survivors," Minerd said. "Just like back in the internet bubble. Who was going to be the survivor? Amazon or pets.com? "We had to have the flush out and the crash in prices to have time to sort this out. I think that's what we will have to go through for the next couple of years" in bitcoin, too, he concluded. Minerd also told CNBC he sees a stock market correction ahead and a big gold rally.

Scott Minerd, Guggenheim Partners

Scott Mlyn | CNBC

Guggenheim Partners' Scott Minerd, who warned last month about a bitcoin collapse, predicts the world's biggest cryptocurrency is poised for further decline.

"You can afford to be patient here. There's more to go," Minerd said in an interview that aired Tuesday on CNBC's "Worldwide Exchange."

On April 21, when bitcoin was around $55,000, Minerd said on CNBC it looked "very frothy."

At time time, the Guggenheim global chief investment officer said bitcoin could plunge 50% in the near term to between $20,000 to $30,000.

He was right.