The ‘speculative frenzy’ will end, but the $ 400,000 goal is still relevant

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In an interview with Bloomberg Markets on Friday, Guggenheim Partners chief investment officer Scott Minerd clarified his seemingly conflicting views on Bitcoin’s potential and revealed that some private Guggenheim funds have invested in cryptocurrency.

Minerd, who oversees $ 275 billion in Guggenheim’s assets under management, called for a staggering $ 400,000 price target for Bitcoin in an interview late last year – easily among the highest price predictions from a great institutional director – but more recently stated in a last Tweet week that the market may be overheated. The about-face even sparked playful accusations of market manipulation.

As Minerd said on Friday, however, his long-term bullish price target remains intact as a bearish pullback may still be in the cards.

“We are seeing a sudden interest in retail […] a lot of crypto outlets are overwhelmed, they are starting to limit orders because they cannot handle the demand. “

One such instance is eToro, which recently warned of buyers’ limitations starting this weekend. Minerd noted that such strong demand could be a sign of too prolonged a rally in the near term, but the narrative winds are ultimately turning in Bitcoin’s favor.

“The other aspect of it shows that cryptography is becoming more and more common. The $ 400.00 price I spoke about was based on the supply of gold in the world, and Crypto in many ways is more attractive than gold.

Minerd noted advantages such as portability and ease of transactions with Bitcoin over physical bullion.

When asked if any Guggenheim funds made the jump into Bitcoin, Minerd said, “I don’t think we’re assigned to any of our mutual funds yet,” although the company is considering allocations. if customer demand increases.

However, he revealed that smaller private Guggenheim funds took the leap.

“In some of our private funds, we have already bought it. […] I recommended to someone, if you believe what I said it will eventually go up to 400,000, 2% of your portfolio will be 20% before it’s all over.

Part of Minerd’s uptrend is rooted in long-term historical analysis. Earlier in the interview, he noted that “we may be entering a golden age” and that “comparisons have been made with the 1920s after the Spanish flu”.

Ultimately, he expects significant retail funds to flock to the markets after the covid pandemic – a pool of money that could also support crypto.