The cryptocurrency industry has become significantly more respectable in recent months, especially after the endorsement from prominent figures such as Elon Musk, commented Guggenheim Partners’ CIO Scott Minerd. As such, he concluded that there is a high possibility of bitcoin reaching $600,000, especially if it follows gold’s trajectory.
Minerd on Musk and Crypto
The CEO of Tesla and SpaceX, also the richest man on Earth – Elon Musk – engaged with the crypto community last week by updating his Twitter profile to display only one word – “Bitcoin.” While the community was speculating whether he’s finally come onboard on the BTC train or if this was another Musk troll, the executive confirmed his newly-found support in a speech on Monday.
Scott Minerd, the Chief Investment Officer at the Wall Street behemoth Guggenheim Partners, touched upon the aforementioned developments in a CNN interview.
By referring to Musk as a “visionary,” Minerd outlined that the crypto field has reached a significant milestone by earning the respect of prominent individuals and institutions.
“Cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy.”
Prior to Musk, long-time bitcoin skeptic Ray Dalio also seemed more bullish on the asset. He called it a “great invention” and suggested that BTC could serve as an alternative to gold.
BTC Price to Top $600K?
Additionally, Guggenheim’s executive spoke about the asset’s recent price developments and offered a somewhat optimistic long-turn prediction.
He believes that the parabolic price increase from October 2020 to early January 2021, when BTC skyrocketed from about $10,000 to a new all-time high of $42,000, is a speculative run. Furthermore, he noted that the institutional demand behind the asset seems insufficient for the time being, which could harm the short-term price perspective.
Nevertheless, Minerd remained bullish overall and doubled-down on a previous projection that forecasted a price tag of $400,000 per coin. He said that his company based the end result on full-scale analysis and a potential 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 would be talking about $400,000 to $600,000 per bitcoin.”
Backlash Against Guggenheim’s CIO Minerd on Social Media
After Minerd’s prediction, many people took to Twitter and Reddit to highlight Minerd’s seemingly manipulative statements, as well as their timing and significance.
Remember Guggenheim wants you to sell #bitcoin so they may buy lower. Been trying to scare the market into thinking price will crash to $20,000, even though they think its worth $400,000. https://t.co/B4woO5ULcW
— Alex Krüger (@krugermacro) February 1, 2021