Venture Capital Firm Foresees Six-Figure Bitcoin Price:
As the Bitcoin network’s next halving approaches in 245 days, numerous projections of substantial price hikes post-halving have surfaced. Scheduled around April 24, 2024, this event will witness the block reward being halved from the present 6.25 BTC per block to 3.125 BTC per block. Pantera Capital, a significant player in cryptocurrency and blockchain technology investments, predicts that Bitcoin’s price could experience a 317% surge, transitioning into six-digit figures following the halving, after initially hovering around $35,448 per coin.
Application of Stock-to-Flow Model:
Pantera Capital explained its forecast methodology, relying on the S2F price model to underpin their projections. This model, rooted in the quantity theory, evaluates Bitcoin’s value in relation to its scarcity by juxtaposing the circulating supply (overall stock) with its yearly production flow (newly minted coins). The hypothesis posits that as successive halvings reduce the issuance rate, Bitcoin becomes scarcer, thereby enhancing the likelihood of appreciation over time. However, it’s worth noting that this model has faced skepticism due to previous unfulfilled predictions over the past two years.
Consistent with Other Predictions:
Pantera Capital’s outlook after the halving aligns with several other forecasts that factor in halving as a catalyst for Bitcoin’s valuation. Notably, Fundstrat in a recent investor’s note affirmed its anticipation of a $180,000 Bitcoin price post-halving. Correspondingly, Blockware Solutions speculated on August 18, 2023, that Bitcoin might potentially reach $400,000 post-halving. Matrixport estimated a BTC value of $125,000 by the end of 2024, while financial heavyweight Standard Chartered projected $120,000 for the same period.
Morehead's Optimism and Rally Expectations:
Reflecting on market trends, Dan Morehead expressed in mid-July that markets can endure periods of decline and investor discomfort only to a certain extent. He highlighted the time that had elapsed since the Terra Luna and SBF downturns, emphasizing that a crypto rally could be on the horizon.
Share Your Perspective:
What’s your take on Pantera Capital’s post-halving Bitcoin price prediction? We invite you to share your insights and opinions about this intriguing subject in the comments section below.
