The recent Bitcoin price rally is fuelling the price fantasies of Bitcoin bulls, which include an increasing number of institutional investors.
The CEO of asset manager Guggenheim Partners is now putting water on the mills of BTC evangelists – and is even outdone by a colleague. The market update.
After the all-time high is before the all-time high: After the Bitcoin price (BTC) set a new record of just over 23,600 US dollars in yesterday’s trading session, it does not look like the bulls will clear the field without a fight. The cryptocurrency starts the day with a gain of 4.3 percent in the last 24 hours and climbs again just above the 23,000-US-dollar mark at the time of going to press. With a market capitalization of currently 426 billion US dollars, 100 billion US dollars have flowed into BTC in the last seven days alone.
Bitcoin price in the weekly chart
It was only in late November that investment firm Guggenheim Partners told the U.S. Securities and Exchange Commission (SEC) that it was reserving the right to invest up to $500 million in BTC from its Macro Opportunities Fund. Now, Guggenheim CIO Scott Minerd has explained where he would like to see the bitcoin price go. Speaking to news portal Bloomberg, Minard offered an assessment that should have bitcoin bulls scuffling their hooves:
Our fundamental analysis has shown that Bitcoin should be worth around $400,000
Minerd justifies this ultra-bullish price outlook with the relatively low Bitcoin market capitalization – measured by global GDP – especially compared to gold. Bitcoin shares many characteristics with the latter, with BTC having “unusual transaction value.”
According to Minerd, Guggenheim has already entered Bitcoin at the $10,000 price point. The planned expansion of its exposure is still awaiting SEC approval.
Bitcoin fund: records tumble at Grayscale
Guggenheim invests in digital gold through the world’s largest bitcoin fund: the Grayscale Bitcoin Trust. Grayscale now holds Bitcoin equivalent to over ten billion US dollars. This makes BTC by far the most important asset in Grayscale’s crypto portfolio, which recently reported a new record value of 13 billion US dollars – even before the recent Bitcoin price rally.
Michael Sonnenshein, managing director at Grayscale, spilled the beans to U.S. TV network CNBC. He, too, is seeing an influx of “big money” into the crypto sector:
At Grayscale, our capital flows are probably 6 times higher now than they were last year, and the types of investors that are putting capital in are unlike any investors we’ve ever seen before. They are some of the biggest investors in the world,?
Sonnenshein said, though he declined to get a price estimate from the CNBC host.
Coinfund: BTC can crack million mark by 2022
Seth Ginns, managing partner at New York-based investment firm CoinFund, on the other hand, is all too happy to provide a price forecast. Like Minerd, Ginns believes a bitcoin price in the six-figure range is not only possible, but the minimum. A Bitcoin price of one million US dollars is thus quite likely – possibly even as early as 2021/21.
Looking at Bitcoin’s 4-year cycle patterns, 150,000 to 250,000 looks like the base case.
BTC is now transitioning into an instutional asset cycle, Ginns added.
As Tesla went from the $25 to $35 range to 150 to 350 and then consolidated for a while – I think we can actually move up the next cycle, see Bitcoin go to 500k to 1M, and then probably consolidate in that range for a few years, Ginns tells Bloomberg with confidence.