Bitcoin (CCC:BTC) may have pulled off its all-time high, but cryptocurrency bulls are confident that exponential gains remain ahead. In fact, one expert said yesterday that the digital currency is on track to take out $600,000… as long as a few things fall into place. So what do you need to know about the latest Bitcoin price predictions?
Over the last 24 hours, Bitcoin has gained just more than 6%. That means the crypto is currently trading hands for about $37,000, off its all-time high above $40,000.
The gains come as investors return to cryptocurrencies with a vengeance. Last week, the stock market honed in on a series of speculative retail stocks. Old-school names like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) promised short-squeeze power and company turnarounds. However, when trading platforms like Robinhood implemented restrictions on individual investors, the little guys felt betrayed. This betrayal sparked a surge of interest in decentralized finance and everything else cryptos have to offer.
This new DeFi wave has spurred on gains in Bitcoin, as well as ushering in an all-time high in Ethereum (CCC:ETH). However, one expert has set a new Bitcoin price prediction of $600,000, laying out a case for the crypto to rally much higher.
So what do you need to know? Guggenheim Partners Chief Investment Officer Scott Minerd told CNN on Tuesday that Bitcoin is heading for $600,000. This comes just months after he called for BTC prices to reach $400,000! Explaining why he was adjusting his target, Minerd said that he thinks growing institutional support will justify long-term gains.
Bitcoin Price Predictions: The Case for $600,000
As Minerd tells it, Bitcoin was far too speculative for institutional investors to dive in, and the cryptocurrency market used to be way too small. However, as its market capitalization and price has grown, Minerd has become increasingly bullish. In fact, he thinks that as it continues to grow, institutional support will grow with it. This was the same reasoning behind his $400,000 target.
But where will this institutional support come from? Well, to crypto bulls, it seems that support is coming from every direction. Nathan DiCamillo reported for CoinDesk today that Visa (NYSE:V) wants to bring Bitcoin services to its traditional banking customers. Its piloting a suite of application programming interfaces (APIs) that will allow customers to buy and sell Bitcoin through its banking partner Anchorage. This comes as other companies like Square (NYSE:SQ) and PayPal (NASDAQ:PYPL) up their own crypto solutions.
Even Tesla (NASDAQ:TSLA) CEO Elon Musk is a big fan. Last week, he affirmed his support for bullish Bitcoin price predictions, saying that Bitcoin is “on the verge of getting broad acceptance by conventional finance people.”
If Musk is right, that $600,000 target from Minerd may be here sooner rather than later.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.