Scott Minerd, Guggenheim’s Global Chief Investment Officer, has increased his Bitcoin fair value estimate. He now says that the price of the cryptocurrency could reach $ 600,000 based on his company’s basic research. Guggenheim’s SEC filing to invest half a billion dollars in Bitcoin took effect earlier this week.
Guggenheim’s Scott Minerd says the price of Bitcoin could reach $ 600,000
Guggenheim Partners Chief Investment Officer (CIO) Scott Minerd spoke about his new Bitcoin price prediction in an interview with CNN Tuesday. Minerd is also chairman of Guggenheim Investments, the global wealth management and investment advisory division of Guggenheim Partners. As of December 31, 2020, Guggenheim Investments had more than $ 246 billion in total assets in fixed income, stocks and alternative strategies.
Minerd first discussed the current monetary policy against the background of further impulses, bubbles on the stock market and other speculative assets as well as the Gamestop saga. “I think we are in a speculative bubble,” he said. “It could take a while.”
Regarding Bitcoin, Minerd said Guggenheim has been studying cryptocurrency for nearly 10 years. “The size of the market just wasn’t big enough to warrant institutional money,” he said, adding, “as Bitcoin’s total market cap got bigger … it looked very interesting.”
He went on to talk about the price and valuation of Bitcoin. “We do a lot of basic research,” he emphasized. “If you consider the supply of bitcoin relative to the supply of gold in the world … if bitcoin went to such numbers,” the Guggenheim CIO stated:
You’re talking about $ 400,000 to $ 600,000 per bitcoin. This is an indication of what might be fair value. That gives you a lot of space to run.
However, Minerd warned, “I don’t really see the institutional support that only comes online today from the likes of Blackrock and Guggenheim and other large institutional investors as sufficient to support the valuation at its current level.” He pointed out that Bitcoin “had a 50% setback from its high” and stated, “I wouldn’t be surprised if that happened again.”
Still, Minerd concluded:
Cryptocurrency has fallen into the area of seriousness and is becoming increasingly important in the global economy.
Guggenheim’s CIO was optimistic about Bitcoin in December when he predicted the price of BTC could reach $ 400,000. However, he then focused on the negative and stated that the parabolic price increase of Bitcoin was “unsustainable”. He also advised investors to sell their coins. Several people immediately pointed out on social media that Guggenheim hadn’t bought BTC at the time. The asset management firm filed with the US Securities and Exchange Commission to invest in Bitcoin through Grayscale’s Bitcoin Trust. The filing took effect at the end of January. Some people believe Minerd tried to manipulate the price of BTC to make his company buy cheap.
Another asset manager who recently spoke of Bitcoin exceeding gold’s market cap is One River Asset Management. CEO Eric Peters expects the price of Bitcoin to exceed $ 500,000.
What do you think of Guggenheim’s Bitcoin prediction? Let us know in the comments below.
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