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Guggenheim investment fund expects a $400,000 Bitcoin

Photo of: Nathan VDH
by Nathan VDH

The year 2020 will have been marked by the explosion in the price of Bitcoin. At the time of writing this article, the price of Bitcoin has passed the historical threshold of $20,000. According to many experts, the trend is not about to stop! Let’s discover the opinion recently issued by Guggenheim Partners LLC, a well-known and recognized institutional investor.

Guggenheim is one of the investment heavyweights whose voice is heard. The company manages a portfolio of assets equivalent to approximately $295 billion. Guggenheim Partners LLC is also 55% owned by its employees. The company has approximately 2,400 employees worldwide.

In November 2020, the company officially announced that it would take its first steps in crypto. Guggenheim announced that it was prepared to invest 10% of the funds allocated to the Macro Opportunities Fund in Bitcoin. In concrete terms, this meant an investment in Bitcoin in the order of 5.3 million dollars.

On Wednesday, December 16, 2020, Guggenheim Chief Investment Officer Scott Minerd dropped a small bomb. Indeed, he felt that Bitcoin still has a very bright future ahead of it. He even gave two reasons for optimism. The first is the scarcity of Bitcoin, with only 21 million BTC.

The second reason is related to the decisions taken by the Fed in the United States to fight the economic crisis caused by COVID-19. Thus, Scott Minerd joins the many other voices concerned about the Fed’s current printing policy.

For Scott Minerd, the price of Bitcoin will continue to rise. Going even further, Minerd even suggested a realistic price target of around $400,000.

“Our expertise leads us to believe that Bitcoin could reach $400,000. This is based on its scarcity and its valuation compared to other assets such as gold. ยป Scott Minerd, Guggenheim Investment Director.

Guggenheim’s positioning and announced optimism are in line with the views already expressed in 2020 by other major financial players. Thus, in May 2020, Paul Tudor Jones announced that he considered Bitcoin as a refuge against inflation. For him, a “great monetary inflation” following the decisions taken by most central banks is to be expected. As early as May 2020, he spoke of Bitcoin as the “best strategy for maximizing profits”.

Similarly, Mike Novogratz, CEO of Galaxy Investment Partners, had a concurring voice. In October 2020, he called Bitcoin “digital gold” and predicted a massive use of Bitcoin within 5 years. More recently, a U.S. Senator, Cynthia Lummis, praised the benefits of Bitcoin to fight the coming wave of inflation. Guggenheim’s opinion is therefore far from being an isolated one!