Most of the crypto market is bullish on Bitcoin, and Guggenheim Partners priced the asset at $400,000. In recent months, Bitcoin (BTC) has managed to attract many proponents, and almost all of them are expressing positive market sentiment after the asset’s recent surge above $20K, and, so far, it has breached the $22,000 level.
However, not everyone is overly bullish. One long-time traditional market trader and chartist, Peter Brandt, said that Bitcoin is bullish. He said that surging above $20,000 is nothing significant as far as the charts are concerned. Brandt tweeted on December 16:
“New highs are always a good indicator of healthy bull trend, but other than that the new highs mean very little of technical significance.”
Big-even price levels at times draw the headlines and much chatter. The $5,000, $10,000, $15,000 and $20,000 levels have attracted different forms of attention over the years. However, these levels may not inherently hold an overabundance of rapid and fast chart significance at any given point.
These levels play on psychology. Still, the flagship cryptocurrency showed some resistance just below the $20,000 level before it eventually broke through with much intensity on December 16.
In the meantime, other sector participants look toward this trend of major mainstream financial players entering cryptocurrency. Bitcoin Depot CEO Brandon Mintz told reporters:
“We’re seeing fresh stories about institutional crypto adoption on almost a daily basis at this point.”
Paul Tudor Jones, MicroStrategy, and MassMutual are included on 2021’s list of major players purchasing bitcoin. Mintz added:
“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.”
Putting into context the institutional bitcoin buying trend, Guggenheim Partners pointed to the $10K level as an opportunity to start flowing funds into bitcoin. The company’s chief investment officer, Scott Minerd, explained in a recent interview with Bloomberg. Minerd noted:
“It’s a little more challenging with the current price closer to $20,000. Amazing over a very short period of time how big of a run-up we’ve had. Having said that, our fundamental work shows that Bitcoin should be worth about $400,000.”
Minerd subsequently explained his rationale for the $400,000 price tag. He said that it arises from aspects like bitcoin’s limited supply and comparisons to other assets, including gold.
The market is however yet to see bitcoin bear and gold proponent Peter Schiff change his stance on BTC.