Scott Minerd, Guggenheim’s global chief investment officer, has increased his estimate of Bitcoin’s fair value. He now says that based on his company’s basic research, the price of cryptocurrency may reach $600,000. Guggenheim’s application to the U.S. Securities and Exchange Commission (SEC) to invest $5 billion in Bitcoin took effect earlier this week.

Scott Minerd of Guggenheim says the price of Bitcoin could reach $600,000

Scott Minerd, Chief Investment Officer (CIO) of Guggenheim Partners, spoke about his new bitcoin price prediction in an interview with CNN on Tuesday. Minerd is also the chairman of Guggenheim Investments, the global asset management and investment consulting arm of Guggenheim Partners. As of December 31, 2020, the total assets of Guggenheim Investment Company’s fixed assets, equity and alternative strategies exceeded $246 billion.

Minerd first discussed current monetary policy in the context of more stimulus measures, stock market bubbles and other speculative assets, and Gametop legends. He said: “I think we are in a speculative bubble.” “It may last for a while.”

Regarding Bitcoin, Minerd said that Guggenheim has been studying cryptocurrencies for nearly a decade. He believes: “The size of the market is not enough to justify institutional funding. As the total market value of Bitcoin grows, it starts to look very interesting.”

He started talking about the price and valuation of Bitcoin. He emphasized: “We have done a lot of basic research.” Guggenheim’s chief information officer explained: “If you consider the supply of Bitcoin, relative to the supply of gold in the world… If Bitcoin is to reach these numbers,”

You will be talking about 400,000 to 600,000 US dollars per bitcoin… This shows what fair value might be. This gives you a lot of running space.

However, Minerd cautioned: “I didn’t really see institutional support today, and people like Blackrock and Guggenheim and other large institutional investors have enough institutional support to support current valuations online.” Pointing out that Bitcoin “has fallen 50% from its highs”, “I wouldn’t be surprised to see this happen again.”

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Nevertheless, Minerd concluded:

Cryptocurrency has become a respected field and will continue to become more and more important in the global economy.

The Guggenheim Chief Information Officer (CIO) was bullish on Bitcoin in December, when he predicted that the price of Bitcoin might reach $400,000. However, he then focused on the negative side, pointing out that Bitcoin’s parabolic price increase was “unsustainable.” He also advised investors to sell their coins. Several people immediately pointed out on social media that Guggenheim had not purchased BTC at that time. This asset management company has submitted an application to the U.S. Securities and Exchange Commission (SEC) to invest in Bitcoin through Grayscale’s Bitcoin Trust; its filing is effective from the end of January. Some believe that Minerd is trying to manipulate the price of BTC so that his company can buy it at a low price.

Another asset manager who recently talked about Bitcoin surpassing the market value of gold is One River Asset Management. CEO Eric Peters predicts that the price of Bitcoin will exceed $500,000.

What do you think of Guggenheim’s Bitcoin forecast? Let us know in the comments section below.

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