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The chief investment officer (CIO) of investment firm Guggenheim, Scott Minerd, says that the price of Bitcoin has the potential to reach $600,000 eventually. In a recent interview on CNN, the investment expert said that the firm’s research on Bitcoin for more than 10 years shows that the digital asset can potentially reach that price level.
If Bitcoin’s supply equals that of gold, then the price would be between $400,000 and $600,000, according to his calculations.
“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’d be talking about $400,000 to $600,000 per Bitcoin.”
Market not strong enough to support recent rally
Bitcoin has been in a rally since November 2020. The rally got stronger in January 2021 when the price rose to a new all-time high of over $41,000. The price, however, eventually dropped to the $30,000 level, which left the crypto community and investors wondering if it was a new bear market or just a retracement to $20,0000.
According to Minerd, the retracement was due to the fact that institutional participation is not yet strong enough to support such a rapid rally. However, he is positive that the institutional participation will grow and increase Bitcoin’s potential to sustain its growth as it becomes more relevant in the global economy.
Minerd said,
“Cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy.”
The $600,000 price target is an upward revision from the $400,000 that Minerd previously gave as the price target for Bitcoin.
Indeed, institutional participation could play a key role in taking Bitcoin to higher levels. Following the retracement to $30,000, JP Morgan analysts have said that Grayscale, the world’s largest digital asset management platform facilitating institutional investment, will play a key role in returning the price above the $40,000 from which it fell.
So far, the price has managed to reach $39,000 in the last 24 hours for the first time since the crash. Whether it will sustain its movement back up remains to be seen, but Grayscale’s funds lock-up, which ended on Wednesday, is bullish and could be the reason for the new breakout above $35,000.
Ponvang Bulus
Ponvang Bulus is a cryptocurrency enthusiast. He writes on cryptocurrency and blockchain technology. As a believer in the glorious future of blockchain, he is helping to spread the word and get the message out there for the world to embrace the future now.
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