By
Steve Muchoki
April 17th, 2024
Guggenheim CIO noted that the recent spikes to the levels above $40,000 are, however, fueled by short-term speculations.
Scott Minerd, the Chief Investment Officer (CIO) of Guggenheim Partners, a global investment and advisory financial services firm has given a new bullish projection for Bitcoin (BTC). As reported by Coindesk, Minerd is projecting a $600,000 price target for Bitcoin in the long-term but noted that the premier digital currency has not seen enough institutional funds to support this massive price forecast.
Speaking in an interview with CNN’s Julia Chatterley, Minerd revealed yet again that his firm has kept its tabs open on Bitcoin for more than 10 years and that the asset’s current valuation is not enough to “justify institutional money.” The Guggenheim CIO noted that the appeal of Bitcoin began to brew when its price topped the $10,000 psychological level, culminating in the influx of institutional investors in the third and fourth quarters of last year.
Despite Bitcoin having a bigger valuation per asset in comparison to gold, its entire market capitalization is still a fraction of Gold’s, a figure which Minerd says if Bitcoin hits can send its price to $600,000 per coin.
“If you consider the supply of bitcoin relative … to the supply of gold in the world, and what the total value of gold is, if bitcoin were to go to those kinds of numbers, you’d be talking about $400,000 to $600,000 per bitcoin,” he said.
Minerd noted that the recent spikes to levels above $40,000 are however fueled by short-term speculations. Nonetheless, he believes “cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy.”
All Eyes on Bitcoin Back to $40,000
The volatilities in the markets have kept Bitcoin well below its all-time high price above the $42,000 it attained back in January. However, recent metrics are pointing to the coin surging back to break the $40,000 resistance in a bid to surpass its previous highs.
While increasing projections like that from Minerd plays a role in fueling this spike, the previous week’s short squeeze saga on institutional short sellers and the eventual stumping of the retail traders behind the effect by brokerage firms including Robinhood has led many to embrace more of the censorship-resistant nature of Bitcoin.
One Bitcoin is currently at $35,883 according to CoinMarketCap and its volatility may herald an increased price surge if the ongoing buying momentum is sustained. While Bitcoin aims at stabilizing at levels above $40,000 for now, the bulls may help bring to life the projected forecast by Minerd and the other analysts that have dropped a word about the coin in recent weeks.