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Guggenheim CIO Scott Minerd says that the rampant money printing by the Federal Reserve coupled with Bitcoin scarcity makes a favorable case for the BTC. Thus he expects BTC to skyrocket to $400,000 wherein it will be close to the global gold market cap.
Bitcoin (BTC) has been on a roll as investors flood the cryptocurrency with massive buy orders. On Thursday, December 17, the BTC price surged all the way to its new all-time high above $23,500. since then, BTC has corrected only marginally and is trading strong at $23,101 at the press time. Just as the Bitcoin bull rally has been unstoppable, institutions continue showering their support for Bitcoin. Speaking to Bloomberg TV on Tuesday, Guggenheim’s chief investment officer Scott Minerd dropped another bomb. Minerd said that as per their research based on fundamentals, Bitcoin (BTC) can eventually climb all the way up to a $400,000 target.
Minerd adds that the Federal Reserve’s “rampant money printing” coupled with Bitcoin’s scarcity makes a favorable case for the asset class.
"Our fundamental work shows that Bitcoin should be worth about $400,000," says Guggenheim's Scott Minerd https://t.co/9QyOWyYAVA pic.twitter.com/uojQqaKPia
— Bloomberg TV (@BloombergTV) December 16, 2020
Last month, Guggenheim Partners filed with the US SEC seeking $500 million worth Bitcoin exposure for its $5 billion Macro Opportunities Fund. Besides, the investment giant is willing to invest in BTC through the Grayscale Bitcoin Trust (GBTC). During his recent interview, Minerd also added that Bitcoin has a lot of attributes like Gold. Post his comments, Bitcoin has already rallied another 15%.
A lot of market analysts have picked up Minerd’s word and have given bullish statements thereafter. In a report, Bloomberg Intelligence strategist Mike McGlone said:
“The lowest-ever Bitcoin annual volatility measure versus gold and the stock market near the end of 2020 may sustain the crypto’s performance advantage in 2021″.
BTC Price Target Can be Higher as Institutions Are Rushing to Adopt Bitcoin
While some institutions have openly declared their interest in Bitcoin (BTC), others have been secretly grabbing it. In the last two days, there have been multiple such disclosures. Hedge fund manager Alan Howard has joined has with crypto institutional firm One River Digital. The two together invested $600 million in Bitcoin during November under the price levels of $16,000.
One River Digital has pledged a total of $1 billion in Bitcoin (BTC) and Ether (ETH) investments by early 2021. Similarly, British investment giant Ruffer LLP has also invested $700 in Bitcoin, in November 2020.
After Guggenheim’s recent Bitcoin price prediction, Seth Ginns – the chief at crypto investment company CoinFund – noted that these are highly bullish signals. He further increased his BTC price target to $1 million.
Guggenheim’s Scott Minerd opened some eyes when he said bitcoin should be worth $400,000. Coinfund's Seth Ginns says it could go to $1 millionhttps://t.co/zZAMjHRrpd pic.twitter.com/T608kBNBtr
— Bloomberg TV (@BloombergTV) December 17, 2020
At a $1 million BTC price, it will twice worth that of the total global gold reserves. Well, Ginns also noted that his company has received a lot of inquiries from insurance firms, hedge funds, and other institutions over the last few months.