- The Bitcoin price could reach $400,000 driven by mainstream adoption.
- Asset management firm Guggenheim confirms its investment in Bitcoin.
Guggenheim Partners Chief Investment Officer Scott Minerd has given an interview to Bloomberg Markets and Finance. During the interview, Minerd reiterated his position that the price of Bitcoin should be close to $400,000 and called the cryptocurrency a “more attractive” investment than gold with a lot of upsides for a potential continuation of the rally from its current price.
At the time of publication, Bitcoin is trading at $37,010 with a 5.14% profit in the last 24 hours. In the weekly chart, Bitcoin is showing a 3.10% loss, which contrasts with the 60.94% gain it has registered in the last 30 days.
The last historical high for Bitcoin was close to $42,000. Since then, the cryptocurrency has been rejected several times as it approaches that price, which is shaping up to be a significant level of resistance. In that sense, Minerd said that Bitcoin’s “parabolic rise” is unsustainable in the short term.
Guggenheim’s CIO added that Bitcoin is in a “vulnerable” price range. At that time, BTC registered one of its biggest setbacks in recent months when the cryptocurrency dropped by nearly 30%. Therefore, Minerd believes that Bitcoin could be “heading into a speculative frenzy,” he said:
The target technical upside of $35,000 has been exceeded. Time to take some money off the table.
Bitcoin’s price seems to be responding to high selling pressure and buying pressure which increases its volatility. Some analysts have claimed that the Asian market is selling Bitcoin in large quantities that are being absorbed by the US market. In contrast, Minerd believes that the interest of retail investors has risen “suddenly” and will be one of the factors that will push the cryptocurrency to new all-time highs.
Guggenheim invests in Bitcoin
With $295 billion in assets under management, Guggenheim Partners is one of the world’s leading investment banking, brokerage services, and asset management firms. Its CIO has reiterated on several occasions that Bitcoin is a better investment than gold because of its characteristics: portability, the scarcity of its supply, and its “unusual” value in terms of transactions.
As reported by CNF, Guggenheim will allocate 10% of its micro fund in Bitcoin. The firm has taken into account the “unbridled money printing” of the United States Federal Reserve. Therefore, they have sought to make an investment in assets that can protect them from dollar inflation, such as Bitcoin. Minerd also previously said that the firm decided to buy BTC an $10,000 and after monitoring the market, the firm allocated funds to Bitcoin and recommended that investors put some of their wealth into the cryptocurrency:
(…) some of our private funds have already purchased it… If you believe what I said that it’ll go to $400,000 eventually, 2% of your portfolio will be 20% before this is all over.
As CNF has stated, reports from Senior Commodity Strategist for Bloomberg Intelligence, Mike McGlone, indicate that Bitcoin could reach $400,000 by 2024. McGlone considers that $30,000 is an important level of initial support in 2021. Furthermore, he believes that this bull run is fundamentally different from 2017 due to the overwhelming institutional participation.