In an interview with Bloomberg Markets on Friday, Guggenheim Partners’ chief investment officer, Scott Minerd, clarified his seemingly contradictory views on Bitcoin’s potential and revealed that selected private funds from Guggenheim have invested in cryptocurrency.
Minerd, who oversees the $ 275 billion in assets under Guggenheim’s management, asked for a very high $ 400,000 price target for Bitcoin in an interview late last year – easily among the top price predictions of a top boss institutional – but said more recently in a Tweet week that the market may be overheated. The turnaround even generated some amusing accusations of market manipulation.
As Minerd said on Friday, however, his long-term bullish target price remains intact, while a bearish retracement may still be in the cards.
Bitcoin’s parabolic increase is unsustainable in the short term. Vulnerable to setback. The technical upside target of $ 35,000 has been exceeded. It’s time to get some money off the table.
– Scott Minerd (@ScottMinerd) January 11, 2021
“One thing we are seeing is a sudden interest in retail […] many of the cryptography points are being overloaded, they are starting to limit orders because they cannot handle the demand. “
Since such an instance is eToro, it recently warned about the buyer’s limitations as of this weekend. Minerd noted that this strong demand may be a sign of an overly extended short-term recovery, but the narrative winds are shifting in favor of Bitcoin.
“The flip side of this is to demonstrate that encryption is becoming much more popular. The $ 400 price I mentioned was based on the gold supply in the world, and encryption in many ways is more attractive than gold. ”
Minerd noted benefits such as portability and ease of Bitcoin transactions over physical gold.
When asked if any Guggenheim funds made the leap to Bitcoin, Minerd said “I don’t think we have been affected yet for any of our mutual funds”, although the company does consider allocations if customer demand increases.
However, he revealed that smaller private funds from Guggenheim have made the leap.
“In some of our private funds we have already purchased it. […] I recommended it to someone, if you believe what I said it will reach 400,000 eventually, 2% of your portfolio will be 20% before all this is over. “
Part of Minerd’s optimism is rooted in a long-term historical analysis. At the beginning of the interview, he noted that “we could be entering a golden age” and that “there were comparisons to the 1920s after the Spanish flu”.
Ultimately, he expects significant retail funds to flow into the markets after the macabre pandemic – a cash reserve that could also boost cryptography.