Bitcoin is far from being a full-fledged bull market. Every attempt to climb back up has been hit by the bears. The last of which was the rally to $ 9,800 on Monday, followed by a rejection of $ 800 million in liquidations.
However, one of the top cryptocurrency funds still has a bullish bias. Company executives wrote in the report that they have a model that suggests Bitcoin could hit $ 100,000 + in 2021.
Bitcoin could hit $ 100,000
Pantera Capital released its June 2020 letter on June 24. In it, the company's CEOs Joey Krug and Dan Morehead tried to explain what will come next for BTC.
They mentioned that there is a chance that Bitcoin will eclipse $ 100,000 in the coming years because the block reward is halved. According to the analysis, BTC could rise to $ 115,000 in August next year if it follows a similar relationship to the previous halves; today's price of $ 9,661 is close to the rate predicted two months ago. The estimate of stock to flow for today would be $ 10,948.
This high prediction stemmed from an analysis of the Bitcoin halves and how these events affect BTC. He pointed that the second has decreased supply only a third as much as the first. Very interesting, it had exactly a third of the impact on the price. Extrapolating this relationship to 2020: the reduction in supply is only 40% as large as in 2016. If this relationship is maintained, that would imply approximately 40% more price momentum: Bitcoin would reach a maximum of $ 115,212 / BTC.
More conservatively, the co-directors of Pantera think that Bitcoin can top $ 20,000 over the next nine months.
They cited the large amounts of money printed by governments and central banks. Also mentioned was the sentiment that professional money managers will start to siphon off money in Bitcoin and crypto as other asset classes become unattractive.
Pantera Capital is far from the only notable investor to have discussed a world in which Bitcoin is trading above $ 100,000.
Financial author Preston Pysh recently said that he thinks Bitcoin is going to shoot more than $ 100,000 in this cycle. This bullish sentiment is due to macro factors such as instability in the hegemony of the US dollar and monetary stimulus from the Federal Reserve:
