Long-term bullish: Guggenheim analyst: Demand from institutional investors is insufficient to justify the Bitcoin price | message

Messages from PayPal, Tesla, MasterCard & Co. are driving the Bitcoin rally
Analyst: Demand from institutional investors is insufficient to justify $ 30,000
Bitcoin long-term forecast raised nevertheless

Last spring, the Bitcoin price plummeted during the Corona crisis to as low as 3,956 US dollars. Since then, the oldest and most popular crypto currency has grown significantly. The recovery picked up speed, especially from autumn 2020, when PayPal announced that it would allow buying, selling and payments with Bitcoin. Bitcoin cracked its previous record high from 2017 in December, then took the $ 30,000 hurdle in early January and rose to more than $ 40,000 in the course of the month. After a temporary decline, the popular cryptocurrency rose to more than 55,000 US dollars in February – the current all-time high is 58,313 US dollars.

Do you want to invest in cryptocurrencies? Our guides explain how to do it within 15 minutes:

Buy Bitcoin, Buy Ripple, Buy IOTA, Buy Litecoin, Buy Ethereum, Buy Monero.

Institutional adaptation is progressing

Institutional adaptation was one of the driving forces behind the Bitcoin rally, which caused the popular cryptocurrency to reach new heights. As CNBC reports, the world’s largest asset manager BlackRock has also started to deal with crypto currencies: BlackRock opened two of its funds for possible Bitcoin investments in January.

Also news such as Tesla’s Bitcoin investment of $ 1.5 billion and the announcement by the US electric car manufacturer that customers will be able to pay in Bitcoin in the future, as well as a blog entry by MasterCard in which Raj Dhamodharan, at MasterCard for digital assets responsible, said that the company wanted to allow transactions with selected crypto currencies, were able to give Bitcoin momentum in the new year.

Institutional investors are not enough

On January 20, Scott Minerd, chief investment officer at Guggenheim, reported on CNBC that Bitcoin may have peaked temporarily and may drop to $ 20,000. A few days later, he said in an interview with Bloomberg Television that institutional investors alone would not be enough to keep Bitcoin prices above $ 30,000. Right now, “the reality of institutional demand that would support a price of $ 35,000 or even just $ 30,000 is simply not there,” Minerd said. “I don’t think the investor base is big enough or deep enough right now to support this type of valuation,” said Minerd.

Bullishe Langfristprognose fr Bitcoin-Kurs

According to Minerd, Bitcoin is still a viable asset class in the long term. As recently as December, the analyst forecast that Bitcoin could rise to $ 400,000. In the meantime he has even adjusted his long-term forecast upwards. In an interview with CNN, Minerd said, “If you look at the supply of bitcoin in relation to the gold supply in the world and the total value of gold, you would be talking from $ 400,000 to $ 600,000 per bitcoin if bitcoin hit such numbers”. Cryptocurrency has “penetrated into the area of ​​seriousness and is becoming increasingly important in the world economy,” said Minerd.

You might also be interested in: NOW NEW – trade Bitcoin & Co. via the finanzen.net app – or for professionals via the Stuttgart Digital Exchange

Minerd has been criticized for price forecasts

With his Bitcoin prognoses, Scott Minerd has caused some confusion in the market in the recent past and has received sharp criticism from some investors. As Cointelegraph reports, some crypto investors see a connection between Minerd’s statements on the cryptocurrency and a planned Bitcoin investment by Guggenheim, which the Guggenheim mutual fund reported in a report to the SEC. The sum of these corresponds to the 500 million US dollars in BTC that were moved to several private wallets by the Coinbase crypto exchange on January 31st. Some crypto investors therefore accuse the CIO of market manipulation, while others see it as merely scaremongering.

Finanzen.net editorial team

Bildquellen: Adrian Today / Shutterstock.com, Lightboxx / Shutterstock.com

Read original article here

Leave a Comment