Guggenheim – Reaffirms Price Target of $400K for Bitcoin
Scott Minerd, Chief Investment Officer of Guggenheim Partners, reaffirmed his $400,000 forecast for Bitcoin (BTC), while speaking to Bloomberg Markets and Finance.
Minerd stated that he considers the numero uno crypto a more lucrative asset than gold with plenty of potential for the rally to continue from the current level.
At the time of writing this article, Bitcoin was trading at $36,598, reflecting a gain of 1.4% in the last 24 hours. The weekly chart of Bitcoin reflects a gain of 2.7%, a reminiscence of the 60.94% profit recorded in the past 30 days.
The recent historical high recorded by Bitcoin was $41,950. From then onwards, the crypto is unable to break above that level, which is turning out to be a considerable resistance.
Taking that into account, Minerd stated that Bitcoin’s “parabolic rise” will be impossible to maintain in the near-term.
Guggenheim’s CIO further stated that Bitcoin is trading in a “vulnerable” price band. Bitcoin had recorded one of its largest price declines in the past few months when the crypto fell by abour 30%. As a result, Minerd trusts that Bitcoin might be “heading into a speculative frenzy.”
“The target technical upside of $35,000 has been exceeded. Time to take some money off the table.”
As a result of swift changes in buying and selling pressure, Bitcoin remains volatile. Some analysts are of the opinion that Bitcoin is sold by Asian sellers and bought by the US buyers. On the contrary, Minerd trusts that the enthusiasm among retail investors have increased “sharply” and will be one of the criteria that will boost the price of crypto to fresh all-time highs.
With $295 billion worth assets under management (AUM), Guggenheim Partners is a prominent player in the brokerage, asset management and investment banking arena. The company’s CIO has reaffirmed on many occasions that Bitcoin offers better value than gold because of its features such as supply scarcity, portability and “unusual” value with respect to transactions.
Guggenheim will set aside 10% of its fund for investment in Bitcoin. The firm has borne in mind the “unbridled money printing” of the US central bank (Federal Reserve). To avoid being hit by dollar inflation, the firm has chosen to invest in Bitcoin.
Minerd has earlier stated that the company decided to purchase Bitcoin at $10,000 and started allocating funds after studying the market. The fund also advised its investors to own a portion of their wealth in the form of cryptos.
“(…) 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.”
Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, has forecast a price of $400,000 for Bitcoin by 2024. McGlone believes that $30,000 is a crucial level of support this year. Additionally, he trusts that the current rally, led by institutions, is basically very different from the one seen four years back.
#Bitcoin May Base at $30,000 on Lower #Volatility, Investor Wave —
The surge in Bitcoin value increases the initial support level to $30,000 to start 2021. Volatility is well-below levels during Bitcoin’s 2017 parabolic run, amidst the swell of #institutional interest pic.twitter.com/KrGm8f4Tz6
— Mike McGlone (@mikemcglone11) January 12, 2021