Pantera Capital sees Bitcoin soaring to $114,000

Author: Sebastian Sinclair Source: DLNews Translation: Shan Ouba, Golden Finance

This year, more and more financial professionals have joined the ranks of predicting Bitcoin prices, and Pantera Capital is one of them. With the completion of the halving, they are optimistic about future prices.

The cryptocurrency hedge fund updated its price prediction made a year ago, saying that the price of Bitcoin could rise to $114,000 by August 2025.

Despite challenges such as inflation concerns, the Federal Reserve's interest rate policy and escalating tensions in the Middle East, the forecast reflects the growing optimism across the industry.

In its 100th letter to investors, Pantera Capital restarted its November 2022 analysis of Bitcoin's historical performance before and after the recent halving.

Pantera Capital uses a method called the "stock-flow model" to evaluate the relationship between Bitcoin's supply and the amount of new output. The amount of new bitcoin produced is halved every four years, and the halving event has a particularly sensitive impact on the change in this ratio (the difference between the supply and the new output). In the past, the price of bitcoin has risen by as much as 93 times. By analyzing the two rebounds before and after the halving, the company found that on average, the price tends to peak 2.6 years later. This would point to the current forecast around August next year. Although the "stock-to-flow model" is not completely accurate, it has been a common tool used in the cryptocurrency industry to analyze the true value of Bitcoin.

Overtaking Gold

Jurrien Timmer, head of global macro at Fidelity, said in February that Bitcoin, the world’s largest cryptocurrency, could reach a valuation of $1.5 trillion, surpassing gold by $500 billion.

He used a variation of a model to show Bitcoin’s scarcity and value proposition compared with gold.

Pantera Capital joins others predicting six-figure prices for Bitcoin, including research firm Bernstein’s forecast of $150,000 by mid-2025.

Anthony Scaramucci, founder of Skybridge Capital, sees Bitcoin’s price reaching $170,000 or more next year, while Thomas Lee of Fundstrat Global Advisors has also said Bitcoin could reach $150,000 in 2024 and $500,000 within the next five years.