Fun

Bitcoin to Peak at $115,000 by August Next Year, Says Pantera Capital CEO

News Feed - 2020-05-06 07:05:52

Bitcoin to Peak at $115,000 by August Next Year, Says Pantera Capital CEO


Pantera Capital chief executive officer Dan Morehead has predicted a 50% chance the price of bitcoin (BTC) will hit $115,000 by August next year.


In a recent letter to investors, Morehead said: “If the new supply of bitcoin is cut in half (with the May 12 halving), all else being equal, the price should rise.”


The cryptocurrency entrepreneur analyzed bitcoin’s year-to-date performance against gold, oil, and private equity financing. He forecasts that BTC will continue to gain against other asset classes, post-halving, as fiat depreciates from stimulus packages.


Morehead noted that halving historically propels a bull run, due to real or perceived scarcity of supply.


“The post-halving rallies have averaged 446 days — from the halving to the peak of that bull cycle. In this cycle, the market did in fact trough 514 days before the halving. If history were to repeat itself, bitcoin would peak in August 2021,” he explained, giving the prediction a “more than 50-50 chance.”


“The second halving decreased supply only one-third as much as the first. Very interestingly, it had exactly one-third the price impact.


Extrapolating this relationship to 2020, Morehead wrote:The reduction in supply is only 40% as great as in 2016. If this relationship holds, that would imply about 40% as much price impulse — bitcoin would peak at $115,212


The Pantera Capital founder noted that Covid-19 related stimulus will reduce the value of paper money and inflate the price of other fixed-quantity assets like gold and BTC.


Morehead also stated that BTC had outperformed gold since March 25 in his letter to investors, rallying more than 32%. “Gold’s been around for 5,000 years, so it’s not going away overnight. But, it’s certainly past its sell-by date,” he said.


He was less kind with oil as an asset class. People have had to pay $20 a barrel for somebody to take it off their hands as prices tumbled.


Bitcoin was born during the previous recession and Morehead sees it coming of age in the looming one, with its 209% 9-year compound annual growth rate recorded in the absence of long-term correlation to stocks, bonds, oil, and other asset classes.


While the previous recession was “V-shaped” with early growth recorded, Morehead believes the corona-induced recession is “L-shaped” as many firms are irrevocably going out of business, the psychological effects of the pandemic are unprecedented and sectors will wait on each other to resume functionality.


Morehead writes that it is “close to inevitable that this will be very positive for cryptocurrency prices.”


What do you think about Dan Morehead’s prediction? Let us know in the comments section below.US Treasury to "Borrow" $3 Trillion for a Single Quarter - Anticipates Taking Billions More for Q3NEWS | 8 hours ago7 Days Left Until the Great Bitcoin Halving: Hashrate Jumps Over 140 Exahash, Miners HoardNEWS | 1 day agoTags in this storyBitcoin, bitcoin halving, BTC, BTC price forecast, COVID-19, Dan Morehead, gold, OIL, Pantera Capital, Venture Capital


Image Credits: Shutterstock, Pixabay, Wiki CommonsUse Bitcoin and Bitcoin Cash to play online casino games here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimer Show comments

News Feed

Former CFTC Chair Chris Giancarlo joins Paxos board
Turner Wright8 hours agoFormer CFTC Chair Chris Giancarlo joins Paxos boardFormer CFTC Chair J. Christopher Giancarlo founded the Digital Dollar Project and currently works as an advisory board member for the Chamber of
Uzbekistan Introduces Monthly Fees for Cryptocurrency Companies
Uzbekistan Introduces Monthly Fees for Cryptocurrency Companies Crypto firms in Uzbekistan will have to pay fees to the state under new legislation proposed by regulators. The char
Vaneck Bitcoin Futures ETF Gets Green Light from SEC — Fund to Join Proshares BTC ETF Listing on NYSE
Vaneck Bitcoin Futures ETF Gets Green Light from SEC — Fund to Join Proshares BTC ETF Listing on NYSE The wealth manager Vaneck will be launching its bitcoin futures exchange-tra
Bitcoin.com Celebrates Ethereum’s Birthday With $6000 Giveaway
Bitcoin.com Celebrates Ethereum’s Birthday With $6000 Giveaway July 30th marks the day, six years ago, Ethereum was launched. The Bitcoin.com Wallet, having ju
BlackRock could open the door to US-regulated stablecoins
Ana Paula Pereira5 hours agoBlackRock could open the door to US-regulated stablecoinsThe increasing engagement of Wall Street firms in the stablecoin market may accelerate regulatory advancements and pave the way for a p
Savannah Fortis13 hours agoSlovakian parliament votes to approve lower crypto taxesA parliamentary vote held by lawmakers in Slovakia approved an amendment that will reduce the taxation of cryptocurrencies, which is curr
Survey: More Than 70% of Salvadorans Believe the Bitcoin Law Has Not Improved Their Personal Finances
Survey: More Than 70% of Salvadorans Believe the Bitcoin Law Has Not Improved Their Personal Finances A recent survey has offered some insight into the real opinions Salvadorans ha
Canada lacks engagement from lawmakers on crypto — Coinbase exec
Turner Wright3 hours agoCanada lacks engagement from lawmakers on crypto — Coinbase execThe Canada country director for Coinbase said local regulators were “much more collaborative” with the industry than their U.S
MTI Liquidators Reject Claim Peddled by Opponents, Insist the Entity ‘Was a Massive Fraudulent Scam’
MTI Liquidators Reject Claim Peddled by Opponents, Insist the Entity "Was a Massive Fraudulent Scam" Liquidators of Mirror Trading International (MTI) have attacked the claim that
Mexico Announces It Will Issue Its Own Digital Coin by 2024
Mexico Announces It Will Issue Its Own Digital Coin by 2024 The government of Mexico announced that the country’s central bank will issue its own digital currency. The state
Google sues alleged China crypto app racketeers: Report
Zoltan Vardai12 hours agoGoogle sues alleged China crypto app racketeers: ReportApproximately 100,000 users have downloaded fraudulent apps from Google Play, but the amount of user funds lost remains unknown.768 Total vi
Savannah Fortis9 hours agoTether treasury receives two $50M USDT lump sums from BitfinexTwo transactions showed lump sums of $50 million in USDT transferred from Bitfinex to the Tether treasury only a few minutes apart.1