Much of the crypto market is bullish on Bitcoin, with Guggenheim Partners pricing the asset at $400,000.
Bitcoin (BTC) has attracted a lot of proponents this year, with many folks expressing positive market sentiment following the asset’s recent rise to $20,000 and beyond. Not everyone is overly bullish though.
Peter Brandt, a long-time traditional market trader and chartist, said Bitcoin is bullish, but surpassing $20,000 is nothing groundbreaking as far as the charts are concerned. “New highs are always a good indicator of healthy bull trend, but other than that the new highs mean very little of technical significance,” Brandt tweeted on Wednesday.
Big-even price levels sometimes draw headlines and chatter. The $5,000, $10,000, $15,000 and $20,000 levels have garnered various forms of attention through the years, although such levels may not inherently hold an overabundance of hard and fast chart significance at any given point. Such levels sometimes play on psychology. Still, Bitcoin recently showed resistance just below $20,000, before finally cracking through with conviction on Wednesday.
Meanwhile, other industry participants look toward the trend of big mainstream financial players entering crypto. “We’re seeing fresh stories about institutional crypto adoption on almost a daily basis at this point,” Bitcoin Depot CEO Brandon Mintz told Cointelegraph. MicroStrategy, Paul Tudor Jones, and MassMutual are included on 2020’s list of large players buying Bitcoin.
“Couple that with this new all-time high, and it’s about as bullish as the market gets. Sustained growth is likely from here, at least for the time being. We are being driven by corporations and billionaires now, not just retailers.”
In line with the institutional Bitcoin buying trend, Guggenheim Partners saw the $10,000 level as an opportunity to begin flowing funds into BTC, according to the company’s chief investment officer, Scott Minerd, in a recent interview with Bloomberg. “It’s a little more challenging with the current price closer to $20,000,” Minerd said. “Amazing over a very short period of time how big of a run-up we’ve had,” he noted, adding:
“Having said that, our fundamental work shows that Bitcoin should be worth about $400,000.”
Minerd subsequently clarified that rationale for the $400,000 price tag stems from aspects such as Bitcoin’s limited supply, as well as comparisons to other assets, including gold.
The market still has not seen Bitcoin bear and gold proponent Peter Schiff switch his stance on the digital asset, however.