Bitcoin rises to $27,000, Guggenheim Investments sees $400,000 as the ultimate goal

Bitcoin has cleared yet another hurdle, breaking above $27,000 on Coinbase around 06:00 UTC on Sunday (December 27) and continuing its rise before reaching a new all-time high (ATH) of $28,400.

Coinbase: BTCUSD USD trading chart

Currently (as of 6:38 UTC on December 27), Bitcoin is trading at around $27,450 on Coinbase, up 10.78% in the past 24 hours and 282.15% year-to-date. Bitcoin’s market capitalization is currently around $510 billion.

Cryptocurrency proponents say Bitcoin could soon top $30,000, and the cryptocurrency’s frenetic pace of record highs makes it seem like we could see the price of Bitcoin hit $30,000 before the end of the year.

Traditional mainstream media, which once either ignored Bitcoin or ridiculed it, has also begun to get excited about Bitcoin’s impressive bull run.

New York Times best-selling author Neil Strauss ridiculed how many people have been dragging their feet on getting into Bitcoin and ultimately have to buy in at higher prices.

Grand plans are premature! Just need to spend more work and tap into its full potential — Stephen Livera (Tweet Dec 26, 2020)

Last Sunday (December 20), crypto analyst/trader Luke Martin (also host of the “Venture Coinist” podcast and the “Venture Coinist” YouTube channel) took a closer look at Guggenheim Partners’ $400,000 target for Bitcoin to see if it makes sense.

You may recall that on December 16, Scott Minerd, global chief investment officer of Guggenheim Partners, “a global investment and advisory firm with more than $295 billion in assets under management,” spoke about Bitcoin in an interview on Bloomberg TV.

The interview began with Guggenheim CIO Scartlet Fu, senior editor of Bloomberg TV’s Market Desk, asking about the Guggenheim Macro Opportunities Fund and its managers’ decision to “invest 10% of its net asset value in the Grayscale Bitcoin Trust.” Specifically, he was asked whether Guggenheim had begun buying Bitcoin and how much of this decision was “tied to the Fed’s unconventional policies.”

“To answer your second question, Scarlett , obviously Bitcoin, and our interest in Bitcoin is tied to the Fed’s policy and the rampant money printing that’s going on. With respect to our mutual funds, you know, we’re not yet live with the SEC. So, you know, we’re still waiting for approval”

“Of course, we decided to start allocating funds to Bitcoin when the price was $10,000. The current price, which is closer to $20,000, is more challenging. You know, we have run an incredible amount in a very short period of time, but our foundational work suggests that the final value of Bitcoin should be about $400,000.”

According to a report published by The Daily HODL on Dec. 20, this is what Martin said about Guggenheim’s $400,000 valuation:

“If you use the market cap of gold as a target and use that as a relative valuation model, if Bitcoin does eat up the market cap of gold over the next 100 years, then I do think that the $400,000 price target that Scott Minerd gave — and I think a lot of other upcoming Bitcoiners would help — actually does make sense, especially when you consider that this store of value asset is so much better than gold.”

“Remember, people store value in collectibles, they store value in art, they store value in expensive cars. Billionaires, millionaires, they have Ferraris, they have Porsches, sometimes they buy them to drive them around, but a lot of times, they buy them for value retention. You buy scarce items because they retain their value very well in a world where we have an infinite fiat money supply. We continue to print money. As the money supply increases, scarce assets continue to increase in value.”