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- Guggenheim’s Scott Minerd now claims that Bitcoin’s fair value is between $400,000 and $600,000, just days after making a $20,000 prediction.
- The suspicious timing for his predictions comes as his company enters the market, a move that has been viewed by some as a form of market manipulation.
The chief investment officer of $275 billion global investment company Guggenheim Partners has flipped his outlook on the price of Bitcoin, again. Scott Minerd now believes the top cryptocurrency is grossly undervalued. According to him, Bitcoin’s fair value is between $400,000 and $600,000.
Minerd made his prediction in an interview with CNN’s Julia Chatterley. Guggenheim has been looking at Bitcoin for a decade, he revealed. In much of that time, the size of the cryptocurrency wasn’t big enough to justify institutional money. However, as BTC’s value has shot up, more institutional investors have become interested, leading Minerd to believe that its fair value is above $400,000, 10x higher than it currently is.
"Cryptocurrency has come into the realm of respectability & will continue to become more and more important in the global economy." @ScottMinerd talks $GME / $SLV / $BTC and the logic of bubbles versus buying frenzy. pic.twitter.com/ZWoZqZNU2M
— Julia Chatterley (@jchatterleyCNN) February 2, 2021
Minerd compared Bitcoin’s value to gold’s, a comparison that has become quite common as the two compete to be the best store of value.
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 went to those kinds of numbers, you’d be talking about $400,000-$600,000 per Bitcoin. That is an indication of what might be the fair value.
While being optimistic about Bitcoin’s future, he cautioned against speculation. “When you consider that within the course of a month we went from $20,000 to $40,000, that’s an act of short-term speculation,” he stated.
The entry of BlackRock, Guggenheim and other institutional investors, as well as support from visionaries like Elon Musk, have been a big boost to Bitcoin’s credibility, he observed.
Flipping stand sparks manipulation accusation
Minerd has been one of Wall Street’s most outspoken investors regarding Bitcoin, and it has not all gone well. While he is now bullish on Bitcoin, he was quite bearish just days ago. Speaking to Bloomberg TV, the Wharton School alumni stated:
Right now, the reality of the institutional demand that would support a US$35,000 price or even a US$30,000 price is just not there. I don’t think the investor base is big enough and deep enough right now to support this kind of valuation.
Just a week earlier, he predicted Bitcoin would drop to $20,000, down more than 50% from its $42,000 price.
“I think, for the time being, we probably put in the top for bitcoin for the next year or so. And we’re likely to see a full retracement back toward the 20,000 level,” he told CNBC.
As it came to be discovered, Minerd’s firm was in the process of purchasing $500 million worth of Bitcoin when he made the bearish remarks. After purchasing, he is now touting a bright future for the cryptocurrency. This has not gone unnoticed by the cryptocurrency world, with many claiming it was an attempt to manipulate the price for his company’s benefit.
“Remember Guggenheim wants you to sell Bitcoin, so they may buy lower. Been trying to scare the market into thinking price will crash to $20,000, even though they think its worth $400,000,” one cryptocurrency trader stated. Another one tweeted:
Bitcoin Manipulation?
Guggenheim CIO:
– says no Institutional demand for #Bitcoin above 30k.– Then buys $500 million worth during dip.
– Now says #Bitcoin price target is $600,000
— Bitcoin Archive (@BTC_Archive) February 3, 2021
