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Guggenheim Investments Increases Bitcoin Fair Value Estimate to $600K

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Guggenheim Global Chief Investment Officer Scott Minerd has increased his bitcoin fair value estimate.

He now says that the price of the cryptocurrency could reach $600K based on his firm’s fundamental research. Guggenheim’s SEC filing to invest half a billion dollars in bitcoin became effective early last week.

The chief investment officer (CIO) of Guggenheim Partners, Scott Minerd, talked about his new bitcoin price prediction in an interview with CNN Tuesday.

Minerd is also the chairman of Guggenheim Investments, the global asset management and investment advisory division of Guggenheim Partners. As of Dec. 31, 2020, Guggenheim Investments had more than $246 billion in total assets across fixed income, equity, and alternative strategies.

Regarding bitcoin, Minerd said that Guggenheim has been studying the cryptocurrency for almost 10 years. “The size of the market just wasn’t big enough to justify institutional money,” he opined, adding that “As the total market cap of bitcoin got bigger … it started to look very interesting.”

He proceeded to talk about bitcoin’s price and valuation. “We do a lot of fundamental research,” he emphasized. “If you consider the supply of bitcoin relative, let’s say, to the supply of gold in the world … If bitcoin were to go to those kinds of numbers,” the Guggenheim CIO explained:

“You’ll be talking about $400K to $600K per bitcoin … That’s an indication of what might be a fair value. That gives you a lot of room to run.”

However, Minerd cautioned, “I don’t really see the institutional support today, which is just coming online from the likes of people like Blackrock and Guggenheim and other large institutional investors, being enough to support the valuation at its current level.” Pointing out that bitcoin has “had a setback of 50% from its high,” he asserted, “I wouldn’t be surprised to see that happen again.”

Nonetheless, Minerd concluded:

“Cryptocurrency has come into the realm of respectability and will continue to become more and more important in the global economy.”

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