Bitcoin Price Could Peak At $600,000 If It Follows Gold, Says Guggenheim CIO

Guggenheim Partners’ CIO Scott Minerd sees the cryptocurrency industry as 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.

Minerd On BTC’s Price Developments

The executive at the Wall Street behemoth has been openly discussing BTC’s price movements and making projections ever since Guggenheim filed documents with the SEC to allocate a certain amount into the asset.

During a recent CNN interview, though, he noted that his company has “been looking into bitcoin for almost ten years.” Nevertheless, Minerd said that the market seemed somewhat small before reaching $10,000 and couldn’t justify the entrance of institutional money.

Guggenheim’s application with the SEC has already passed review, and the firm could be looking into purchasing bitcoin soon. Minerd highlighted that with BTC’s current price well within a five-digit territory, the asset seems “very interesting.”

He also doubled-down on his previous bullish prediction saying that the cryptocurrency could peak to somewhere between $400,000 and $600,000 per coin. Guggenheim came to this rather optimistic projection after a full-scale analysis and comparison to gold:

“We did a lot of fundamental research, and 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.”

However, he noted that this prediction is not guaranteed and warned that the recent parabolic increase from $10,000 to $40,000 in a matter of months seems unsustainable. Furthermore, he reaffirmed his belief that the institutional demand is insufficient to keep the asset price at such levels and said that even a 50% retracement from the top would be out of the question.

The Crypto’s Expanding Role

Minerd also touched upon Elon Musk’s recent endorsement of bitcoin in which Tesla’s CEO said that BTC is a “good thing,” and he regretted not purchasing any eight years ago.

By describing Musk as visionary, Guggenheim’s CIO asserted that his support has proven that the crypto industry has gained the respect of numerous prominent individuals and organizations.

“Cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy.”

Featured Image Courtesy of Reuters