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What will be the Bitcoin rate according to Guggenheim Partners?


Investment banking company Guggenheim Partners conducted a number of fundamental research in the context of the growth prospects of the first cryptocurrency. It came to the conclusion that the asset will continue the growth that began in January. This was stated by the investment director of the company Scott Minerd.

In an interview with CNN, he expressed confidence in the rise in price of Bitcoin in the long term. But urged to prepare for a possible drop in its rate by 50% in the near future. He said that there is still “a lot of space” for the continued growth of the first cryptocurrency, if we take into account the limited emission and compare it with gold. At the same time, CIO of Guggenheim Partners noted that the rise in the rate from $ 20,000 to $ 40,000 in one month indicates short-term speculation.

He added that earlier bitcoin wasn’t interesting to large institutional investors due to its low capitalization. According to the top manager, Guggenheim Partners has been studying the first cryptocurrency for almost 10 years. Previously, market size “wasn’t large enough and unjustified for institutional money. With the growth of bitcoin capitalization, the risks of investing in it have decreased”.

Guggenheim Partners moved into the crypto industry at the end of 2020.

Since January 31, the SEC has allowed Guggenheim Partners to invest 10% of the fund’s reserves in the first cryptocurrency. At least half a billion dollars of the company will end up in the Bitcoin Trust from Grayscale.

Bitcoin rate forecast

Earlier, in December, Minerd called $ 400,000 a fair price for the first cryptocurrency. Now he has raised his forecast to $ 600,000.

The expert updated his position precisely after receiving permission from the regulators to invest in bitcoin. Although he noted that the company decided to invest in bitcoin when it was worth $ 10,000.

Analysts at Guggenheim Partners calculated the price based on the fact that the amount of Bitcoins is limited to 21 million. They also noted that Bitcoin is a digital payment network that is excellent for accumulating wealth.

“Bitcoin actually has many of the attributes of gold, and at the same time is a very unusual asset in terms of transaction speed and price”, said chief investment officer at Guggenheim Partners.

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