Pantera Capital Founder and CEO Dan Morehead has predicted there may be greater than a 50-50 probability Bitcoin goes up “and goes up massive”, with a predicted peak of over $500,000 in August 2021.
The San Francisco-based blockchain and cryptocurrency hedge fund founder made the feedback in a April 30 letter to traders inspecting the efficiency of Bitcoin (BTC) previous to the Might 12 rewards halving compared to gold, oil, and enterprise capital.
Initially hesitating to make any type of prediction, saying he was “of two minds” as to how the halving would have an effect on the worth of the cryptocurrency, the CEO acknowledged “if the brand new provide of bitcoin is lower in half, all else being equal, the worth ought to rise”:
“Bitcoin has traditionally bottomed 459 days previous to the halving, climbed main into it, after which exploded to the upside afterwards. The post-halving rallies have averaged 446 days – from the halving to the height of that bull cycle. On this cycle, the market did in reality trough 514 days earlier than the halving.”
Nevertheless, Morehead then dropped a bombshell prediction:
“IF historical past have been to repeat itself, bitcoin would peak in August 2021 – at $533,431. Clearly that’s a giant IF. That worth sounds ludicrous…. Simply sayin’ that there’s greater than a 50-50 probability bitcoin goes up – and goes up massive.”
Bitcoin overtakes gold and oil
Morehead additionally famous BTC’s efficiency compared to legacy property since he wrote a letter to traders on March 25, tweeting that the cryptocurrency had outperformed gold.
#Bitcoin overtakes Gold 12 months-To-Date.
Bitcoin was born in a monetary disaster. It should come of age on this one. pic.twitter.com/Lw2Sn9RtR1
— Dan Morehead (@dan_pantera) April 29, 2020
The asset could also be dropping a few of its luster in keeping with the Pantera CEO — “it’s definitely previous its Promote By date” — however “gold’s been round for five,000 years, so it’s not going away in a single day.”
The CEO additionally focused oil markets with a quite on-point jab on the asset: “At the very least you don’t need to pay individuals to take your Bitcoin.” The assertion was in response to grease going unfavorable for the primary time in historical past, when the business needed to pay others to take barrels off their arms.
“…oil has been a horrible asset class. Oil’s 35-year compound annual development fee (CAGR) is zero level zero…. It’s by no means even hit 6% in the easiest of occasions. Bitcoin has a 9-year CAGR of 215% with primarily zero long-term correlation to the remainder of the world.”
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