Crypto Fund with $3.5 Billion AUM Predicts Bitcoin’s price
- Pantera Capital has given a new forecast for the price of Bitcoin (BTC) after the next halving.
- The asset manager projected a $148,000 post halving price for the coin.
American hedge fund Pantera Capital is bullish on Bitcoin (BTC), predicting that the leading token’s price may run into six figures in the near future. According to the “Blockchain Letter” issued by the crypto fund, which boasts of $3.5 billion worth of Assets Under Management (AUM), to investors, Bitcoin could reach as high as $147,843 per coin following the 2024 halving event.
This forecast was arrived at after using the Stock-to-Flow (S2F) ratio as a price model to evaluate and predict future pricing trends across each halving event. Utilizing this theory, BTC valuation was considered against its scarcity and then further contrasted its circulating supply with its annual production flow.
The data derived from this theory suggested that as BTC’s issuance rate diminishes through consecutive halvings, it becomes more scarce and hence increasingly probable that its value will appreciate over time
Based on the report, Bitcoin may rally by about 32% from its current price before the next halving. Thereafter, the coin will surge by 450% reaching $148,000, the peak of the next bullish cycle. At the time of this writing, Bitcoin was trading at a price of $26,025.84 per data from Marketcap.
Bitcoin Halving To Impact Price of Token
Markedly, the BTC halving event is not until the next 243 days. The Bitcoin halving event is a model crafted to control the supply of the token and impact its value. This event happens every four years and the last one was in 2020. The next iteration is scheduled to happen around April 20th, 2024 during which the block reward for the network will be slashed, resulting in a decrease in the supply of new coins entering the market.
The current block price which is 6.25 BTC per block will be slashed to 3.125 BTC following the halving. As a result, approximately 450 BTC will be minted each day. The expectations of the next BTC halving on the price of the token was seen in 2020 when Bitcoin price jumped by more than 23% immediately after the event.
Apart from the halving event, other positive happenings like Judge Analisa Torres’s recent ruling that XRP is not security in the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC), and the potential approval for spot Bitcoin Exchange Traded Fund (ETF) amongst other, are expected to influence the price of BTC positively.
The Pantera Capital team feels “Bitcoin has historically bottomed 477 days prior to the halving, climbed leading into it, and then exploded to the upside afterward. The post-halving rallies have averaged 480 days – from the halving to the peak of that next bull cycle.”
Pantera Capital’s report is somewhat similar to that of Standard Chartered Bank which speculated that BTC could touch $50,000 by year-end and could further rally all the way to $120,000 by the end of 2024.