Bitcoin price of $400,000 according to fundamental analysis

Bitcoin price of $400,000 according to fundamental analysis by Guggenheim & other firm confirms BTC purchase of 744m.

Bitcoin price rises strongly in price and can make gains

Currently, the Bitcoin price is trading at $22,540, well above its all-time high from late 2017, but if you believe the experts from the corporate world, this is just the beginning.

For example, the CIO of Guggenheim revealed that, according Ethereum Code to their fundamental analysis, the Bitcoin price should be around 20 times its current value. Furthermore, another billion-dollar company confirmed that it has invested over $700 million in BTC.

But one thing at a time. So let’s take a detailed look at what’s behind this news.

Bitcoin price should be at $400,000, according to Guggenheim’s CIO

Scott Minerd, chief investment officer of Guggenheim Partners, shocked Bloomberg television hosts on Wednesday afternoon when he said his firm’s fundamental analysis shows the Bitcoin price should be worth $400,000.

However, according to Minerd, this target for the Bitcoin price, which can be categorised as a lunar prediction, is not based on wishful thinking. On the contrary, the analysts at the billion-dollar firm base their Bitcoin price forecast on two main things:

  • The scarcity of the asset and
  • its relative value to gold as a percentage of gross domestic product.

Bitcoin has many of the characteristics of gold while also having an unusual value in terms of transactions.

According to Minerd, Guggenheim made the decision to invest in Bitcoin when the leading cryptocurrency was trading around $10,000. He also simultaneously suggested that the company was unlikely to buy any more BTC above a Bitcoin price of $20,000. So, at the very least, he said that further allocations to bitcoin would be „a little more difficult“ given the current price of over $20,000.

Guggenheim Partners manages more than $230 billion worth of assets and is far from the only billion-dollar firm where buying Bitcoin is on the agenda.

Ruffer confirms $744m bitcoin purchase

Ruffer’s exposure to bitcoin currently stands at around £550m, which represents around 2.7% of the firm’s assets under management

Based on current exchange rates, £550m is worth $744.26m, or around 45,000 BTC, based on November 2020 prices.

The investment was „primarily a portfolio protection measure“ to „act as a hedge“ against „some of the risks we see in a fragile currency system and distorted financial markets“.

The ambiguous wording in Ruffer’s initial shareholder note led to uncertainty about whether the investment represented 2.5% of the multi-strategy fund or 2.5% of the funds assets under management of more than $20 billion.