Dan Morehead, the CEO and founder of Pantera Capital, wrote in a letter to investors that Bitcoin (BTC) – the largest cryptocurrency in the world – could reach $500,000 by August 2021. This is one of the highest price predictions for Bitcoin.
Bitcoin Could Surge To Over $500,000
Bitcoin has attracted the attention of a large number of investors in the last few years. Many institutions are also paying close attention to Bitcoin and other virtual currencies. The halving event that is going to take place on May 12 is also an important moment for Bitcoin and the entire crypto space.
In the letter, Mr. Morehead wrote to investors that the halving event could certainly affect the price of Bitcoin. Indeed, the new issuance of BTC is going to be reduced from 12.5 BTC to 6.25 BTC per block. Furthermore, he mentioned that if the new supply of Bitcoin is cut in half, the price should rise if all other variables remain unchanged.
About the halving event and the effect over price, Morehead stated:
“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.”
Furthermore, he went on saying that if Bitcoin peaks in August, repeating the story of previous halving events, the highest price for BTC could eventually be $533,431. Morehead has also mentioned that this price is massive and that there is more than 50-50 chance Bitcoin moves higher.
Despite the current market volatility, Bitcoin registered over 16% gains since the beginning of the year. This is certainly more than gold, stocks and real estate. It is worth mentioning that the Coronavirus crisis has affected the price of the largest cryptocurrency that fell in February to $3,800 for a brief period of time.
At the time of writing this article, Bitcoin is being traded above $9,000 and it has a market capitalization of $165.68 billion. Other virtual currencies are also operating with gains in the last 24 hours, including Ethereum (ETH), XRP and Litecoin (LTC). If BTC wants to move above $500,000 it would have to experience a growth rate of 5,400% in just 15 months.