Much of the crypto market is optimistic about Bitcoin, with Guggenheim Partners valuing the asset at $400,000.
Bitcoin (BTC) has gained many supporters this year, and many people expressed positive market sentiment after the recent increase in assets to $20,000 and beyond. However, not everyone is so optimistic.
Peter Brandt, a traditional market trader and long time „chartist“, said that Bitcoin is bullish, but going above $20,000 is not innovative when it comes to graphics. „New highs are always a good indicator of a healthy uptrend, but other than that, new highs mean very little technical importance,“ Brandt tweeted on Wednesday.
Very uniform price levels sometimes attract headlines and talk. The $5,000, $10,000, $15,000 and $20,000 levels have attracted various forms of attention over the years, although those levels may not inherently have an overabundance of hard and fast graphical significance at any given time. These levels sometimes play with psychology. Still, Bitcoin recently showed resistance just under $20,000, before finally rising with conviction this Wednesday.
Meanwhile, other industry participants are looking at the trend of large financial players entering crypto-currencies. „We’re seeing fresh stories about institutional adoption of cryptomonies almost daily,“ Bitcoin Depot CEO Brandon Mintz told Cointelegraph. MicroStrategy, Paul Tudor Jones and MassMutual are included in the 2020 list of great players who bought Bitcoin.
„Combine that with this new all-time high, and it’s as bullish as the market can get. There’s likely to be sustained growth from here, at least for the time being. We’re now being driven by corporations and billionaires, not just retailers.
In keeping with Bitcoin’s institutional buying trend, Guggenheim Partners saw the $10,000 level as an opportunity to start flowing funds into BTC, according to the company’s investment director, Scott Minerd, in a recent interview with Bloomberg. „It’s a little more difficult with the current price being closer to $20,000,“ Minerd said. „It’s surprising in a very short period of time how big a rise we’ve had,“ he said, adding, „I think it’s a little bit more difficult with the current price being closer to $20,000:
„Having said that, our fundamental work shows that Bitcoin should be worth about $400,000.
Minerd later clarified that the justification for the $400,000 price is derived from aspects such as the limited supply of Bitcoin, as well as comparisons with other assets, including gold.
However, the market has yet to see Bitcoin’s gold advocate and critic, Peter Schiff, change his position on the digital asset.