• Scott Minerd said Guggenheim's price prediction is based on its fundamental research on Bitcoin
  • Minerd said in December that it was difficult to buy Bitcoin at $20,000
  • He said multiple times last month that Bitcoin could not be sustained at $30,000

Bitcoin could possibly be worth $600,000 in the future if its supply is considered relative to the supply of gold, according to Scott Minerd, Guggenheim Investments' chief investment officer.

In an interview with CNN, Minerd said Guggenheim’s fundamental research puts the value of the dominant cryptocurrency at $600,000 per BTC when taking into account its relationship with gold.

“If you consider the supply of Bitcoin relative to the supply of gold in the world, and what the total value of gold is, if Bitcoin were to go to those kinds of numbers, you’d be talking about $400,000 to $600,000 per Bitcoin,” he told CNN.

Minerd added that while Guggenheim has been looking at Bitcoin for nearly a decade, the firm cannot justify investing in it because the market size "was not big enough."

However, Bitcoin’s market capitalization has continued to grow. Around the time it passed $10,000, the dominant cryptocurrency started to look interesting, the CIO noted.

Around the time Bitcoin hit its three-year psychological resistance of $20,000, Minerd went on air to say that his firm’s research puts Bitcoin’s value at $400,000. He revealed that they started buying Bitcoin at $10,000 but noted that the cryptocurrency was difficult to buy at $20,000.

As Bitcoin went past $30,000 and $40,000 and then retraced back to $35,000, Mionerd said the cryptocurrency’s rise is unsustainable in the near term and is vulnerable to setbacks. “Time to take some money off the table,” he said on Twitter on Jan. 11.

In another interview, he said institutional demand for Bitcoin is not high enough to be sustained at $30,000.

Some on social media have questioned the timing of Minerd’s changing sentiments on Bitcoin. According to trader and analyst Alex Kruger, Guggenheim might be scaring the market so it can buy Bitcoin lower. As per its SEC filing, it was allowed to buy Bitcoin on Jan. 31.

Cointelegraph noted that it’s also possible Minerd is simply responding to the fast-moving events in the market.

Bitcoin VIN JD from Pixabay