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Dan Morehead, Pantera Capital Founder and CEO, is highly convinced that Bitcoin price will peak in August 2021 after reaching $533,431 in the anticipated post-halving bull rally.
Many experts and analysts are bullish on the price of Bitcoin after the halving event that is expected to happen in a few days and Dan Morehead, Pantera Capital Founder and CEO, had his say on the matter. Pantera is a San Francisco-based blockchain and cryptocurrency hedge fund.
In an April 30 letter to investors, he examined the year-to-date performance of Bitcoin before the May 12 halving. He compared BTC to gold, oil, and venture capital. In that letter, he said that there is more than a 50-50 probability that the flagship crypto will go up hugely. Bitcoin may peak over $500,000 in August 2021 according to Morehead.
At first, he stayed away from making any type of prediction explaining that he was ‘of two minds.’ At some point, he was not sure of how the halving event would impact Bitcoin price and the general crypto market but the Pantera Capital CEO affirmed that:
“If the new supply of bitcoin is cut in half, all else being equal, the price should rise.”
Pantera Capital CEO View on Bitcoin Halving Effect on BTC Price
Notably, Bitcoin has bottomed 459 days before a halving event according to historical data. It then climbed into the events and later exploded to all-time highs. Historical data also shows that the post-halving rallies have averaged 446 days straight from the halving to the peak of the bull cycle.
“In this cycle, the market did in fact trough 514 days before the halving.”
Then, Morehead made an intriguing prediction. He said that in a scenario that history was to repeat itself, then there is a high possibility that Bitcoin will peak in August 2021 after reaching $533,431. He explained:
“Obviously that’s a big IF. That price sounds ludicrous…. Just sayin’ that there’s more than a 50-50 chance bitcoin goes up – and goes up big.”
Bitcoin Rushes Past Gold And Oil
Pantera CEO also said that Bitcoin’s performance has outperformed the other legacy assets like oil and gold since his March 25 letter to investors. The asset may likely be losing some of its attractiveness and could be past its Sell By date. On the contrary, gold has been around for almost 5,000 years which means that it is not going anywhere overnight.
Morehead also targeted the oil markets with a straightforward jab. He said that it will not reach a point where investors will need to pay others to take their Bitcoin. That comment came in response to oil sinking into the negatives for the first time in its history. At that time, the industry players had to pay others to take oil barrels off of their possession.
Recently, oil has become a terrible unreliable asset class. The black gold’s 35-year compound annual growth rate (CAGR) is now zero point zero. Interestingly, it has never even hit highs of 6% even in the very best of times.
“Bitcoin has a 9-year CAGR of 215% with essentially zero long-term correlation to the rest of the world.”
All eyes, for now, are looking at the imminent halving event waiting to see how it will impact Bitcoin’s price and the general crypto industry.