As Bitcoin reached $40,000 for the second time, we continue hearing price predictions for the future of the largest virtual currency in the world. Scott Minerd, the CIO of the investment firm Guggenheim, said during an interview with CNN that Bitcoin could eventually move to $600,000.
Could Bitcoin Reach $600,000?
During the weekend, the entire crypto market got very bullish. Several altcoins reached new highs and Ethereum (ETH) reached a new record after surpassing $1,700. In addition to it, Bitcoin was able to get again above $40,000 after several weeks below this level.
The market has turned bullish again as companies and other large firms could eventually purchase Bitcoin in the near future. At the same time, several companies have already purchased BTC and ETH in recent months. Thus, this is creating a bullish sentiment in the market.
Regarding Bitcoin, Mr. Minerd mentioned that the market cap of Bitcoin is starting to look very interesting. Furthermore, he stated that they have been doing a lot of fundamental research on Bitcoin analysing its supply and comparing it with the one of gold.
In addition to it, Minerd explained that for Bitcoin to reach the market valuation of gold, each coin would have to be worth between $400,000 and $600,000. This would represent a price increase of 10x from current levels. Nevertheless, he mentioned that we might not arrive there.
On the matter, he stated:
“If you consider the supply of Bitcoin relative to the supply of gold in the world, and what the total value of gold is, if Bitcoin were to go to those kinds of numbers, you would be talking about $400,000 to $600,000 per Bitcoin.”
Furthermore, he has also analyzed the bull run experienced by Bitcoin in recent months. The price of the most popular virtual currency went from $20,000 to $40,000 in just a few months. Minerd considers that this is short-term speculation. Moreover, he believes that the current valuation of Bitcoin cannot be sustained by the purchases of just a few institutional investors.
He has also shared his view on how Bitcoin could easily lose 50% of its value. In the last decade, Bitcoin experienced different bull runs to ATHs and fell afterwards. Nevertheless, he has also mentioned that the virtual currency could become more and more important in the global economy in the coming years.
At the time of writing this article, Bitcoin is being traded at around $39,500 and it has a market valuation of $735 billion.