Everyone gets started! – With the new start of euphoria in its latest bull market, Bitcoin (BTC) is entitled to an even higher frequency of price predictions than usual. After the (interested) announcement of actress Lindsay Lohann a few days ago, today the most serious hedge fund Pantera Capital is ready to play.
Previous Pantera Capital Predictions Were Right
In a letter to its investors published on January 16, the hedge funds Pantera Capital recalls that Crypto Superstar prices for the moment respect its model presented in April-May 2020.
This model, strongly inspired by the Stock-to-Flow (or S2F) of precious metals, is centered on the phenomenon of halving in the Bitcoin ecosystem. This process takes place approximately every 4 years – every 210,000 blocks of transactions validated to be precise – and consists of halving the reward that is given to minors when they validate a block.
The experts of Pantera Capital thus estimated that, according to this model:
“(…) The market bottom typically occurs 1.3 years before the halving and, on average, the market peaks 1.2 years after. Or a cycle of about 2 and a half years. “
Thus, if the model were correct, we would still be a long way from the market high of the current cycle. This new price record should thus be done „in August 2021“ according to hedge fund analysts .
The latter thus estimate the price of a single bitcoin at 115,212 dollars for this summer 2021.
Will the shortage of supply lead the king of cryptos to its new high?
The driving force behind this potential dramatic rise in prices, announced by the hedge fund, would be driven by the combination of the drop in production of the number of bitcoins per block with significant pressure on its demand .
Regarding the drop in production, it is certain and has already been recorded since May 2020. Indeed, with the last halving to date , it is no longer 12.5 bitcoins but only 6.25 BTC which are produced for each new mined block (around all every 10 minutes).
As for the shortage between supply and demand , although the buying pressure on bitcoins was very strong at the end of 2020 – between funds like Grayscale or companies like MicroStrategy – the first signs of out of stock have just been made. surface and still seem far from having been “priced” (taken into account) by the market.
In the meantime, even without this, Pantera Capital’s Bitcoin Fund has performed very well in 2020. The fund has indeed registered a nice + 299% .