The latest Bitcoin price rally is fueling the price fantasies of the Bitcoin bulls, which increasingly include institutional investors. The CEO of the asset manager Guggenheim Partners is now gripping the mill for the BTC evangelists — and is even surpassed by a colleague. The market update.
After the all-time high is before the all-time high: After the Bitcoin exchange rate (BTC) set a new high in yesterday’s trading session of just over 23,600 US dollars, it does not look like the bulls will leave the field without a fight. The key cryptocurrency started the day with a plus of 4.3 percent in the last 24 hours and climbed again just above the 23,000 US dollar mark at the time of going to press. With a market capitalization of currently 426 billion US dollars, 100 billion US dollars have flowed into BTC in the last seven days alone.
It wasn’t until late November that investment firm Guggenheim Partners told the US Securities and Exchange Commission (SEC) that it was reserving the right to invest up to $ 500 million from its Macro Opportunities Fund in BTC. Now Guggenheim CIO Scott Minerd has explained where he would like to see the Bitcoin course. Compared to the news portal Bloomberg, Minard gave an assessment for the best bitcoin bulls should scratch their hooves:
Our fundamental analysis has shown that Bitcoin should be worth around $ 400,000
Minerd justifies this ultra-bullish price outlook with the relatively low Bitcoin market capitalization — measured in terms of global GDP — especially compared to gold. Bitcoin shares many characteristics with the latter, with BTC having an “unusual value for transactions.”
According to Minerd, Guggenheim already got into Bitcoin at $ 10,000. The planned expansion of the commitment is still awaiting approval by the SEC.
Bitcoin funds: The records are tumbling at Grayscale
Guggenheim invests in digital gold through the world’s largest Bitcoin fund: the Grayscale Bitcoin Trust. Grayscale now holds Bitcoin worth over ten billion US dollars. This makes BTC by far the most important asset in Grayscale’s crypto portfolio, which recently reported a new record high of 13 billion US dollars — even before the latest Bitcoin price rally.
Michael Sonnenshein, Managing Director at Grayscale, told the US TV broadcaster CNBC about the sewing process. He, too, observes an influx of “big money” into the crypto sector:
At Grayscale, our capital flows are now likely 6 times higher than they were last year, and the types of investors putting capital in are unlike any investor we’ve ever seen. They are some of the largest investors in the world, said Sonnenshein, who did not want the CNBC moderator to elicit a price estimate.
Coinfund: BTC can break the million mark by 2022
Seth Ginns, Managing Partner at the New York investment company CoinFund, on the other hand, is more than happy to provide a price forecast. Like Minerd, Ginns also considers a Bitcoin rate in the six-digit range not only possible, but the minimum. A Bitcoin rate of one million US dollars is therefore quite likely — possibly even as early as 2021/21.
If you look at the patterns of Bitcoin’s 4 year cycles, 150,000 to 250,000 looks like the base case.
BTC is now moving into a cycle of institutional assets, Ginns continues.
When Tesla went from the $ 25 to $ 35 range to 150 to 350 and then consolidated for a while — I think we can actually move on to the next cycle, see Bitcoin go to 500k to 1M, and then probably for one consolidate a few years in this area,
Ginns is confident about Bloomberg.
The stock-flow model also supports the thesis of the 1 million dollar BTC — albeit “only” from 2024, after the next Bitcoin Halving.
With the jump over 20k, the BTC price continues to follow the price predicted by the S2F surprisingly exactly — of course, there is no guarantee that it will stay that way.