“If you can buy something at $7,000 which was $20,000, it’s probably a good trade.” – Dan Morehead
In their April newsletter Pantera Capital Management, a blockchain focused hedge fund, said that Bitcoin’s (BTC) price of $6,500 was the low point for the cryptocurrency. He continued that it was “highly likely” that BTC’s price will break $20,000 by EOY 2018. This was initially reported by The Wall Street Journal (WSJ) on Friday, April 13.
In December 2017, the CEO of Pantera Capital, Dan Morehead, forecasted that Bitcoin’s value would drop by half before it would reach new highs. The first phase of this prediction has come true, as BTC plunged below $7000 earlier this year.
Since the Q1 2018 tumble, BTC’s price has been revitalized. On April 12th the price skyrocketed by $1,000 in half an hour.
BTC is now trading at $8,276. It is up about three percent over the last 24-hours to publishing time.
Morehead stated he “rarely [has] such a strong conviction on timing.” He believes, “A wall of institutional money will drive the markets much higher.”
Numerous Wall Street actors made moves into cryptocurrency this past week. Richard Kim, a Goldman Sachs exec, teamed up with Michael Novogratz’s crypto merchant bank as COO. Further, there were reports that crypto trading would soon begin at Soros Management Fund. In recent days, Rockefeller’s venture capital firm Venrock partnered with crypto investment company Coinfund.
Morehead affirmed that in his professional opinion “we’re in the first innings of a multi-decade trade.” He believes this because Bitcoin dropped below its 200-day moving average, a “rare buy signal.”
Reportedly, Morehead has been careful with his public crypto advice. Having only made four other predictions previously.
BTC’s recent price increase could be due to the quickly approaching US tax day, April 17. Investors in response to this have waned their crypto selloffs due to the confusion.
Morehead agrees with this examination of the current crypto market, writing that he “imagine[s] that a portion of the selling pressure on the market, in general, has been unintended tax positions.”
Recently, tech investment magnate Tim Draper said that by 2022 he sees Bitcoin reaching $250,000. In 2014 when BTC was around $320 – his prediction that BTC would surpass $10,000 in 2017 was spot-on.
BTC prices courtesy of CoinMarketCap