Pantera Capital Bullish on Bitcoin Price
According to Pantera Capital, a leading crypto asset manager, Bitcoin (BTC) is on track to reach nearly $150,000 during its next four-year halving cycle. In its recent "Blockchain Letter," Pantera executives reinforced their bullish BTC price forecasts for 2024 and beyond.
Halving Cycles and Price Performance
Pantera Capital argues that Bitcoin's price performance closely correlates with its halving cycles. With the next halving expected within the next year, the firm is confident that historical trends will continue. It notes that BTC/USD has historically bottomed out around 477 days prior to a halving, then saw a climb leading up to the event, which resulted in a significant price surge afterward. The post-halving rallies have averaged 480 days, from the halving to the peak of the next bull cycle.
Past Halving Data Supports Predictions
If history repeats itself, Pantera Capital suggests that the current BTC price cycle bottom was marked by the 2022 bear market bottom. Looking ahead, the firm believes that by the halving date in April 2024, BTC/USD could be trading at around $35,000, a target that is still within reach. However, the real excitement lies in the 480 days following the halving, where Bitcoin is projected to reach not only a new all-time high but potentially much more.
Supply Reduction and Price Impact
Pantera Capital highlights the correlation between the reduction in new bitcoins supply and its impact on price during halvings. While the 2016 halving decreased the supply by one-third, it had a similar impact on price. The 2020 halving reduced the supply by 43%, resulting in a 23% price impact. With each halving, the reduction in new supply is expected to be halved as well. If history repeats itself, Pantera predicts that Bitcoin could rise to $35,000 before the halving, and then surge to $148,000 afterward.
Bitcoin Bulls and Optimistic Forecasts
Pantera Capital is not alone in its six-figure BTC price predictions. Other experts, including those using the "Lowest Price Forward" metric, forecast Bitcoin surpassing $100,000 by 2026. While some believe that $100,000 is possible before next year's halving, the overall sentiment remains highly optimistic.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved before making any investment or trading decisions.
