This great Wall Street figure shocks his world
„Bitcoin soon at $400,000“ – This great Wall Street figure shocks his world
An insane prediction on Bitcoin – Guggenheim Partners is obviously bullsih on Bitcoin. After taking a 10% stake – about $50 million – in Grayscale’s Bitcoin fund, Scott Minerd, its chief investment officer, surprised Bloomberg presenters by announcing a $400,000 Bitcoin. This astronomical Bitcoin Superstar price would be derived from Guggenheim’s fundamental analyses. According to Minerd, 2 metrics were taken into account to determine this price: the scarcity of the asset and its relative value compared to an ounce of gold.
„Bitcoin has many of the attributes of gold and at the same time has an unusual transaction value. »
Scott Minerd, Investment Director at Guggenheim Partners
„Our fundamental work shows that Bitcoin should be worth about $400,000,“ says Guggenheim’s Scott Minerd https://t.co/9QyOWyYAVA pic.twitter.com/uojQqaKPia
– Bloomberg TV (@BloombergTV) December 16, 2020
A fundamental model based on rarity and similarities with gold?
This is strongly reminiscent of the Stock-to-Flow model of the PlanB analyst.
Chart update: #bitcoin S2F (time series only) model. BTC price (red dots) moves nicely towards model line (white line), just like 2017 and 2013. And … do I see a little orange?👀 pic.twitter.com/R7SGmpHAiU
– PlanB (@100trillionUSD) December 15, 2020
To put it simply, this model values an asset according to its production. This same model predicts a continuous appreciation of Bitcoin following halvings to reach monumental values.
To go further on Stock-to-Flow, you can consult this series of articles proposed by the Journal du Coin team.
This appetizing statement is obviously to be taken with a grain of salt (like all the others by the way), since it comes in the middle of ATH and comes from an actor already (strongly) positioned on Bitcoin.