The „speculative frenzy” has faded, but the $ 400,000 target remains

In an interview with Bloomberg Markets on Friday, Scott Minerd, chief investment officer at Guggenheim Partners, explained his seemingly contradictory views on Bitcoin’s potential, revealing that Guggenheim’s private funds have invested in the cryptocurrency.

Minerd, who oversees the $ 275 billion Guggenheim assets under management, called for A. The high price is $ 400,000 for Bitcoin In an interview late last year – easily among the highest price predictions from a major corporate head – but he said recently in a tweet last week that the market could be overheating. Even around the face He sparked some hilarious accusations of market manipulation.

As Minerd said on Friday, however, its long-term bullish price remains the same while a downward pullback may still be possible.

“One thing we’re seeing is the sudden interest in retail […] A lot of cryptocurrency outlets are cumbersome, and they are starting to restrict requests because they can’t handle the request. „

Once such an example is eToro, which was done recently Be warned of buyer restrictions that begin this weekend. Minerd indicated that this strong demand may be a sign of an overheating in the short term, but that narrative winds are ultimately turning in Bitcoin’s favor.

„The flip side of that is proving that the cryptocurrency is becoming more popular. The price of $ 40,000 that I talked about was dependent on the supply of gold in the world, and cryptocurrencies are in many ways more attractive than gold.”

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Minerd pointed out benefits such as portability and ease of transactions with Bitcoin compared to physical bullion.

When asked if any of the Guggenheim funds have made the leap in Bitcoin, Minerd said, „I don’t think we’ve been affected yet by any of our mutual funds,” although the company will consider allocations if the client’s demand rises.

However, it was revealed that the smaller Guggenheim Special Funds had made the leap.

In some of our own boxes we have already bought it. […] I recommended someone, if you think what you said will reach 400,000 in the end, 2% of your portfolio will be 20% before this is all over. „

Part of Minerd’s rise is due to a long-term historical analysis. Earlier in the interview, he indicated that „it is possible that we will enter a golden age” and that „there are comparisons made with the 1920s after the Spanish flu.”

Ultimately, large retail money is expected to flow into the market in the wake of the Covid pandemic – A group of funds that could boost cryptocurrencies as well.