Since Bitcoin (BTC), the largest cryptocurrency by market capitalization, entered into the bull market that brought about recording a new price all-time high a few weeks ago, there have been tons of positive predictions from various analysts within and outside the crypto ecosystem.
Some analysts called for $100,000, $200,000 for BTC. While some others believe that the king of coins is capable of attaining higher prices.
As many people in the crypto sphere aired their opinions regarding the future of Bitcoin price, Scott Minerd, the global head of investment at the $270 billion asset management firm, Guggenheim Investments, says that BTC should be worth about $400,000, considering the firm’s fundamental analysis.
Luke Martin Analyzes Scott Minerd’s Massive Bitcoin (BTC) Prediction
According to Scott Minerd, the analysis that resulted in the massive Bitcoin price expectation is based on scarcity and relative valuation such as things like gold as a percentage of GDP.
So, the popular trader and crypto analyst, Luke Martin, took his time to analyze the $400,000 Bitcoin price in a new video.
In the video, Martin referenced the 21 million total supply cap of Bitcoin and governmental policy choices he thinks would strengthen the possibility of such an exorbitant price prediction.
He also added that the growing interest of institutional players such as MicroStrategy, hedge funds, and insurance companies is a positive catalyst:
“If you use gold’s market cap as a target and use that as a relative valuation model, if Bitcoin does eat into gold’s market cap over the next 100 years, then I actually do think the $400,000 price target that Scott Minerd gave – and I imagine a lot of other soon-to-be Bitcoiners will be giving – actually does make sense, especially when you account that store-of-value assets are much bigger than just gold.
Remember, people store value in collectibles, they store value in fine art, they store value in expensive cars. Billionaires, millionaires, they have Ferraris, they have Porsches, and sometimes they buy them to drive them around, but a lot of times they buy them as a store of value.
You buy scarce items because they retain their value well in a world where we have infinite supply of fiat money. We continue printing money. Scarce assets continue to go up as the money supply goes up.”
“A really simple model of using the target market cap of gold and what the supply of Bitcoin is, dividing the market cap by the supply, gives you the $400,000 – it’s not entirely unreasonable. It might take a long time to get there, and I would even say it’s a good possibility in my lifetime.
So don’t go out there and YOLO long 100x, don’t go tell your friends that Luke said it has to go to $400,000, next week or next month, remember this is a long-term thing.”