Guggenheim Pumping its Bitcoin Bag with $400,000 Moon Target
Less than three weeks after filing for buying 27,700 Bitcoin, 0.15% of the digital asset’s total circulating supply, Guggenheim Investments has started pumping its bags.
According to Scott Minerd, chief investment officer at Guggenheim, Bitcoin’s scarcity combined with the Federal Reserve’s “rampant money printing” will push the price of Bitcoin to about $400,000.
Minerd’s BTC moon target came when the world’s largest cryptocurrency broke past $20,000 to well above $23k. Minerd told Bloomberg on Wednesday,
“Our fundamental work shows that Bitcoin should be worth about $400,000.”
“It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
All this new signalling by the old guard is classic behavior. You wanted institutional adoption then be prepared.
They loaded up the private/internal funds at $10k-$15k, and now they're going to ring the bells all the way to the top of the next Cycle. https://t.co/AzFPj06HxN
— Bob Loukas (@BobLoukas) December 16, 2020
Trader and economist Alex Kruger says signaling sky-high targets is how financial markets work to drive “further inflows in a pyramid-like fashion.” As institutions continue to enter the crypto market, Kruger expects them to come with their own more significant numbers.
$400k is not a whacked price target, anyway, at least not for the crypto market, where we have calls for $1 million per BTC in the future. Analyst Qiao Wang said,
“Not sure why people are shocked by the $400k target. Merely puts BTC at the same market cap as gold. But the total addressable market is way higher than gold. It's gold plus all the zero- and negative-yielding debt.”
According to Seth Ginnis, managing partner at Crypto Fund, $150,000 to $200,000 is like the base case for Bitcoin adding, “I think we could pull forward the next cycle and go to $0.5M to $1M in the 2021-2022 timeframe” and then consolidate in that range for a few years.
For the crypto market beloved, Michael Saylor as well, $1 million per BTC is a real thing, but “one day.”