Bitcoin should be worth $400000 – CIO of investment giant Guggenheim
The CIO of the $233 billion investment firm revealed that as per their analysis, Bitcoin should be trading at $400,000.
He cited the rampant money printing by the Federal Reserve as one of the key factors that will propel Bitcoin to dizzying heights.
Bitcoin should be worth $400,000, a Wall Street veteran has claimed. Scott Minerd, the chief investment officer at Guggenheim Investments, stated in a recent interview that the continued printing of money by the Federal Reserve will lead to a great Bitcoin rally.
Speaking in an interview on Bloomberg TV, Minerd stated that the valuation comes from his firm’s fundamental analysis. He added:
It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.
Guggenheim Investments is the investment arm of Wall Street financial services firm Guggenheim Partners. The firm majors in investment banking, broker dealer services and asset management, with $233 billion worth of assets under management.
In late November, Guggenheim had revealed that it will invest 10% of its micro fund in Bitcoin, following in the footsteps of several other asset managers that are looking to Bitcoin as a hedge against inflation. The company decided to buy Bitcoin when the cryptocurrency was worth $10,000, Minerd disclosed. With the price having doubled since then, he admitted it’s a “little more challenging” to purchase the cryptocurrency now.
“Rampant money printing” by the US Federal Reserve sparked Guggenheim’s interest in Bitcoin
Just recently, the Fed announced it would continue to buy $120b of debt per month until it achieved price stability.