منو سایت

Pantera Capital’s Bold Bitcoin Price Prediction

 تاریخ انتشار :
/
  Bitcoin

Recent events in the crypto industry have taken a heavy toll on the valuation of digital currencies. Price predictions have never looked so boring. However, Pantera Capital is bold in its outlook for the cryptocurrency market, particularly with its Bitcoin price prediction.

Pantera Capital is the world’s largest cryptocurrency hedge fund by AUM, headquartered in Menlopark, California.

Pantera Capital Bitcoin Price Prediction

Pantera’s technical price forecast takes into account the Bitcoin money supply function. Satoshi Nakamoto created Bitcoin to have a total supply of 21 million, with the supply of new coins decreasing over time. This fact provides a fundamental aspect in predicting the price of Bitcoin.

Assuming the demand for new bitcoins remains constant and the supply of new bitcoins is halved, the price of bitcoins will increase. Currently, 6.25 bitcoins are mined every 10 minutes and miners are rewarded (block reward).

The block reward will be halved every 4 years, technically this will be possible until 2140 and note that all bitcoins will be mined. The next halving is expected to occur on April 20, 2024, when the block reward will decrease to 3.125 BTC per block.

The halving event of 2016 reduced the supply of new bitcoins by a third. Interestingly, it had exactly the third effect on the price. Later in 2020, the halving event reduced the supply of new Bitcoin by 43% from the previous halving. 23% had a big impact on the price.

Also, before the halving event, the demand for Bitcoin has increased due to the anticipation of the price increase.

Pantera Capital

Pantera Capital Bold Bitcoin Price Prediction 1

Historically, Bitcoin bottomed 477 days before the halving event and then went on an uptrend leading up to it. After the halving, prices rose for 480 days until the top of the bull cycle. If it rewrites its history, Bitcoin will end on December 30, 2022, climb in early 2024, and have a stronger rally after the halving event. Bitcoin trades at $36,000 before the halving event and rises to $149,000 afterward.

Dynamics of the digital currency industry in the future

The firm expects more price volatility across the crypto ecosystem as fears of contagion lead asset holders to adjust their portfolios. Solana, Aptos and other FTX related assets will be hit the hardest.

FTX burst. The exchange, once the third-largest by trading volume, has filed for bankruptcy protection in the United States. The two-week breakout is sure to be a turning point for the crypto industry.

The markets have been down a lot on this news, and that’s reflected in our performance, but we also expect when the markets bounce back.

Pantera Capital

Pantera Capital noted that exposure to FTX is limited to Blockfolio earnings. The gains were attributed to FTX and FTT shares. A quick reaction to the risk liquidated their positions on November 8. Their total exposure was about 3% of AUM.

Our main goal in such a situation is to get rid of the assets so that the assets are gone forever.

Pantera Capital

According to the company, this episode will be a setback for adoption as some fearful and skeptical retail investors fear being left on the sidelines. They predict that institutions previously wary of the space will deepen their skepticism. However, negative emotions decrease over time.

In terms of regulation, strict new measures are warranted, especially for platforms that deal with retail customers. The company praised decentralized protocols because they are public, open and more transparent and do not require users to trust. They hoped that regulators would see this and shift their attention away from regulating DeFi and focus on regulating centralized entities.

However, their argument may not sit well with European regulators. John Califf, deputy governor of the Bank of England, noted at an event at Warwick Business Schools that behind decentralized protocols are “stakeholders who earn money from their operations.” He compared decentralized protocols to a driverless car, “DeFi is only as good as the rules, programs and sensors that organize their operations.” Authorities in the UK need a lot of confidence to deploy such systems in the financial mainstream.