price of bitcoin has “a lot of room to run,” pointing out that its limited supply could see it hit $600,000 if it were to take over gold’s position as a safe haven asset.
In an interview with CNN’s Julia Chatterley, Minerd was asked about the flagship cryptocurrency and revealed that based on Guggenheim’s fundamental research BTC could go to $400,000 to $600,000 based on its limited supply and I being a safe haven asset. He said:
- If you consider the supply of Bitcoin relative, let’s say, to the supply of gold in the world, and what the total value is, if Bitcoin were to go to this kind of numbers, you’d be talking about $400,000 to $600,000 per Bitcoin. Now, I’m not saying we’ll get there…
Minerd cautioned that while he wasn’t saying the price of the flagship cryptocurrency will hit $600,000 in the future, it gives us “what might be a measure of fair value,” and shows that for BTC’s upside there is a “lot of room to run.”
The CIO of Guggenheim noted that the firm has been tracking the price of bitcoin for nearly a decade, but said the cryptocurrency’s market capitalization was too small for it to invite institutional investors, until it hit $10,000.
Per his words, however, in a few weeks the price of BTC went from $20,000 to over $40,000 which to him is “max of short-term speculation,” which means the money “is migrating into other places,” implying the price of bitcoin will drop in the short-term.
While he does not believe institutional investment is large enough to help bitcoin remain at its current levels, it’s only now just beginning with firms like Ruffer Investment, MicroStrategy, and MassMutual investing in BTC. Guggenheim itself has already bought bitcoin for some private funds.
Addressing Elon Musk saying he is a “supporter of bitcoin,” Minerd said the Tesla CEO has always been a visionary and cryptocurrencies have “come to the realm of respectability and will continue to become more and more important in the global economy.”
Featured image via Pixabay.