Guggenheim Partners chief investment officer Scott Minerd said bitcoin could rise to $600,000, but he did not rule out the possibility of a 50% correction in BTC in the near future.
According to one of the heads of Guggenheim Partners Scott Minerd, the price of bitcoin can reach $600,000. The company's investment director said this in an interview with CNN. He said:
"We've done a lot of basic research. If you look at the supply of bitcoin relative to, say, the supply of gold in the world, and what its total value is, if BTC were to target those numbers, you could predict its price at $400,000-$600,000."
While Minerd isn't sure bitcoin can eventually reach the aforementioned target, he believes the first cryptocurrency has "a lot of room for growth."
Recall that in November, Guggenheim Partners applied to the U.S. Securities and Exchange Commission (SEC) for more than $500 million in Macro Opportunities funds to invest in Grayscale Bitcoin Trust.
Approval of the application went into effect Jan. 31 -- meaning the firm can now access the new asset. Minerd said BTC has been on Guggenheim's radar for nearly a decade, but its market capitalization wasn't large enough to "justify" an institutional investment.
"We've been studying bitcoin for almost a decade, and the market size hasn't been large enough to justify institutional investment. As the overall market capitalization of BTC has grown, at about $10,000 per coin, it has started to look very interesting to us."
Nevertheless, Minerd continues to stand by his earlier view that institutional support is not strong enough to keep BTC above its current level. According to the investment director, the bitcoin price has accelerated a lot, and he "wouldn't be surprised" to see a 50% correction:
"If you consider that we went from $20,000 to $40,000 per BTC during the month, that's maximum short-term speculation."
Minerd also commented on Ilon Musk's recent statement that cryptocurrencies may be "becoming more important" to the global economy:
"Cryptocurrency has entered the realm of respectability and will continue to become increasingly important in the global economy," he said.