Bitcoin price action could hit a massive $42,000 figure by the end of this year, the CEO of crypto investment firm and hedge fund Pantera Capital thinks.
Bitcoin Price Trend Line Can Lead To Huge Gains
Speaking on the latest episode of the Unchained Podcast on July 23, Dan Morehead said that the firm was sticking by its trusted Bitcoin price analysis to determine future performance.
This, he confirmed, includes the possibility of BTC/USD hitting $356,000 in 2021 if its historical compound annual growth rate persists.
At the bottom of the 2018 bear market, when Bitcoin traded at $3100, Pantera considered what growth would be if the price returned to its historical trend line and then kept up that performance in future years.
“That put Bitcoin at $42,000 at the end of 2019, which I know sounds crazy, but essentially we’re halfway back there,” Morehead said.
“It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that, and then if you just extrapolate that line out for another year, it’s $122,000 per Bitcoin and in one more year $356,000[.]”
Morehead: Markets Will Accept ‘Crazy’ Price Increases
Bitcoin’s volatile last few weeks has concerned analysts who were already considering where the three-month-long bull market which began in April would end.
Currently trading under $9800, Bitcoin is now 30% below its recent highs of $13,800, challenging even other, less optimistic, prediction models which put it at $21,000 by the end of the year.
As Bitcoinist noted, $9800 support is all that stopped markets from falling further this week, as traders nurse 11% monthly losses.
For Morehead, however, the psychology behind bigger numbers for the Bitcoin price has already proven its nature.
“…($42,000, $122,000 and $356,000) sound crazy, but (in) our first research piece that we wrote on Bitcoin, we predicted it would go to $5000, and when it was at 100 bucks, everyone thought that was totally nuts, but these numbers, in 2 or 3 years, people look back and go, oh yeah, that makes sense,” he continued.
Similar logic could lend weight to some of the boldest Bitcoin price forecasts still on the market, including John McAfee’s infamous $1 million bet with himself.
Others, such as investor Tim Draper’s $250,000 price tag by 2023, also ensure Morehead is not alone in his bullish outlook.
What do you think about Pantera Capital CEO’s Bitcoin price predictions? Let us know in the comments below!
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