Scott Minerd, chief investment officer (CIO) at investment firm Guggenheim, says that Bitcoin has the potential to eventually reach $ 600,000 in price.
In a recent interview with CNN, the investment expert said that the firm’s more than 10 years of research on Bitcoin showed that the digital asset could potentially reach this price level.
If the supply of bitcoin is equal to gold, according to their calculations, the price will be between $ 400,000 and $ 600,000.
“If you think of the bitcoin supply… according to the gold supply in the world and the total value of gold, if Bitcoin were going to such numbers, you would be talking about $ 400,000 to $ 600,000 per Bitcoin. . “
Market not strong enough to support the latest rally
Bitcoin has been in a rally since November 2020. The rally intensified in January 2021 when the price rose to a new all-time high of over $ 41,000. However, the price eventually dropped to the $ 30,000 level, leaving the crypto community and investors wondering if this was a new bear market or just a pullback to $ 20,0000.
The withdrawal, according to Minerd, was due to institutional engagement not being strong enough to support such a rapid rally. However, it is positive that institutional engagement will grow and will increase Bitcoin’s potential to continue its growth as it becomes more relevant to the global economy.
The $ 600,000 price target means an upward revision from the $ 400,000 Minerd had previously given as a price target for Bitcoin.
In fact, institutional engagement can play a key role in taking Bitcoin to higher levels. Following the withdrawal to $ 30,000, JP Morgan analysts said that Grayscale, the world’s largest digital asset management platform that facilitates institutional investment, will play a key role in raising the price above $ 40,000 from the low level.