- The CEO of Pantera Capital, Dan Morehead, predicts a Bitcoin price of $500,000 by August 2021 due to the upcoming halving.
- Bitcoin has recently performed significantly better than many assets, such as gold or the S&P 500, America’s most important stock index.
After the Bitcoin price had risen to $9,100 a few hours ago, the price fell to $8,840 within an hour. The supposed new attempt to reach $10,000 was thus slowed down for the time being. According to several experts, Bitcoin must close above the $9,000 mark in the daily chart in order to continue to rise in the long term. However, industry giants such as Dan Morehead are not deterred from forecasting new all-time highs for Bitcoin.
Bitcoin will rise to $500,000 by August 2021
Dan Morehead sees Bitcoin halving as a great opportunity, which could catapult Bitcoin to a new all-time high. Morehead explains that in principle all parameters remain the same, only that the Mining Reward will be halved and therefore the price will increase in his opinion. As he explains, historically, Bitcoin bottomed out 459 days before halving and then exploded in price:
Bitcoin has historically bottomed 459 days prior to the halving, climbed leading into it, and then exploded to the upside afterwards. The post-halving rallies have averaged 446 days – from the halving to the peak of that bull cycle. In this cycle, the market did in fact trough 514 days before the halving.
If history repeats itself and Bitcoin shows a similar development, similar to the previous halvings in 2016 and 2012, the Bitcoin price could rise to more than $500,000 by August 2021. Morehead describes that there is still no guarantee for this development and that the odds are still 50:50 as there are too many factors that influence the price:
IF history were to repeat itself, bitcoin would peak in August 2021 – at $533,431. 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.
Morehead states that compared to other assets such as real estate or oil, Bitcoin has shown the strongest performance since the beginning of the year to date with an increase of more than 16% and this trend will continue:
Bitcoin was born in a financial crisis. It will come of age in this one.
#Bitcoin overtakes Gold Year-To-Date.
Bitcoin was born in a financial crisis. It will come of age in this one. pic.twitter.com/Lw2Sn9RtR1
— Dan Morehead (@dan_pantera) April 29, 2020
Bitcoin and Gold will survive crisis
According to a report by Bloomberg, Bitcoin as well as the entire cryptocurrency market has matured considerably and could soon take on the status of “digital gold”. Bitcoin, as well as physical gold, will benefit most in an environment of infinite money printing:
Bitcoin and gold also stand to be primary beneficiaries of the unprecedented monetary stimulus that’s accompanied by a mean-reverting stock market. The macroeconomic effects of the coronavirus accelerate Bitcoin’s process of gaining value relative to other cryptos.
