Guggenheim Partners’ Scott Minerd remains optimistic about Bitcoin over the long term, but said the world’s largest cryptocurrency ran too far and too fast on Wednesday.

“Given the massive short-term development of Bitcoin, things are very frothy and I think we need to make significant corrections to Bitcoin,” the company’s global chief investment officer told CNBC’s Worldwide Exchange. “

Bitcoin traded just under $ 55,000 per token on Wednesday morning, a week after it hit an all-time high of nearly $ 65,000 ahead of Coinbase’s direct listing.

“I think we could go back to $ 20,000-30,000 on Bitcoin, which is a 50% drop, but the interesting thing about Bitcoin is that we’ve seen these kinds of drops before,” Minerd said. However, he said he thinks this is part of “normal development in a longer-term bull market,” with bitcoin prices eventually going to be between $ 400,000 and $ 600,000 per unit.

Minerd turned heads late last year when he first shared his long-term price target for Bitcoin. He pointed to the inherent scarcity – only 21 million bitcoins are created at a time – and value relative to assets like gold. Those December utterances came on the same day that the digital currency first dwarfed $ 20,000.

Bitcoin has continued its massive rally that began in 2020 and is up nearly 90% so far this year. Institutional adoption was cited as a factor fueling advancement. Some companies like Tesla have some of their cash holdings invested in Bitcoin, and finance companies from Mastercard to Goldman Sachs are moving into the crypto space.

The pace of Bitcoin’s rise has even worried some crypto bulls like Minerd, who also warned of a short-term retreat earlier this year. Some crypto bears continue to argue that Bitcoin is in a bubble that will eventually burst.

Bill Miller, the longtime value investor who has owned Bitcoin for years, told CNBC on Tuesday that he wasn’t concerned that the digital currency was in a bubble like it did in 2017 when it hit a record high of nearly $ 20,000. Bitcoin fell sharply in the following months, losing about 80% of its value in what is known as the “crypto winter”.

“Deliver [of bitcoin] grows by 2% annually and the demand is growing faster. That’s all you really need to know, and that means it can go higher, “Miller said in an interview on CNBC’s” The Exchange. “However, it may not be a straight up march because” with Bitcoin, volatility is the price . “You pay for the performance,” he added.