Pantera Capital, an investment firm and hedge fund, released a crypto report on Thursday saying Bitcoin’s stock-to-follow model predicts a price of $115,000 by August 1, 2021, and it might even be ahead of schedule.
In May 2020, with the price of Bitcoin flat over two weeks, there’s was a little under-reaction from the market to the last halving event. However, Pantera Capital analysts explained that the halving is a big event and it takes years to play out, "The typical trough is 1.3 years before the halving and on average the market peaks 1.2 years after. The whole process has taken 2.5 years.” This will push Bitcoin above the $115,000 mark by August.
Bitcoin’s parabolic rally may have placed the price a bit ahead of the model’s projection and this week’s 30% correction spooked some retail investors, but evidence suggests that many whales bought the dip at $30,000 and the U.S. Dollar has declined nearly 12% in the past year. Pantera added that sharp corrections and short consolidation periods are characteristic of bull markets and small tremors are healthy to prevent bigger crashes.
Institutional Bitcoin investors seem to be waiting for Thursday, January 21, when Joe Biden will be sworn in as President of the United States, before pumping the world's leading cryptocurrency to new all-time highs. Trump also faces his second Impeachment trial in the first weeks of Biden's presidency and a litany of lawsuits that might make the transition of power more volatile. Let's hope not.
In the meantime, many of the leading altcoins have taken the spotlight, with Polkadot (DOT) up 114% this week, Chainlink (LINK) up 55%, Cardano (ADA) up 38%, and Ethereum (ETH) up a modest 13%. About $23 billion is being passed around in defi protocols at the time of writing, according to DeFi Pulse, but we will see how well altcoins hold up once Bitcoin makes a run to $50,000.
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