Guggenheim CIO Says Bitcoin Could Reach $600,000

Scott Minerd, investment director of Guggenheim Partners, predicted that Bitcoin could rise to $600,000, but he does not rule out the possibility of a 50% correction of BTC in the near future.

February 3, 2021 | AtoZ Markets – According to one of the heads of Guggenheim Partners Scott Minerd, the cryptocurrency industry is a growing and valuable part of the global economy. He doubled-down on his long-term bullish BTC prediction but said that investors need to be wary of the speculative price increase from October 2020 to early January 2021.

Scott Minerd Bitcoin Price Prediction

In an interview with CNN, the company's investment director said the price of bitcoin can reach $600,000. He was quoted as saying:

“We have done a lot of fundamental research. If we consider the supply of bitcoin in relation to, say, the supply of gold in the world, and what is its total value, then if BTC aimed at such numbers, it would be possible to predict its price of $400,000 - $600,000. "

While Minerd is unsure if Bitcoin can ultimately achieve the aforementioned goal, he believes that the flagship cryptocurrency has "plenty of room for growth."

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Recall that in November, Guggenheim Partners filed an application with the US Securities and Exchange Commission (SEC) for the allocation of more than $500 million from the Macro Opportunities fund to invest in the Grayscale Bitcoin Trust.

The approval of the application came into effect on January 31st, which means that the firm can now access the new asset. Minerd said that BTC had been in Guggenheim's radar for almost a decade, but its market capitalization was not large enough to "justify" institutional investment.

“We've been studying Bitcoin for almost a decade, and the market size wasn't big enough to justify institutional investment. As the total market capitalization of BTC increased, at about $ 10,000 per coin, it started to look very interesting to us. "

A 50% BTC Correction

Nonetheless, Minerd continues to adhere to his previous view that institutional support is not strong enough to keep BTC above its current level. According to the investment director, the price of bitcoin has accelerated significantly, and he "won't be surprised" to see a 50% correction:

“Considering that during the month we went up from $20,000 to $40,000 per BTC, this is the maximum short-term speculation.”

Minerd also commented on Elon Musk's recent statement that cryptocurrencies may "become more important" for the global economy:

“Cryptocurrency has entered the realm of respectability and will continue to grow in importance in the global economy,” he said.

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