Dan Morehead: “Bitcoin Could Hit €100k This Summer”
- Pantera’s CEO predicts Bitcoin will climb almost double by summer
- Bitcoin struggles to seize $60,000, investors need fresh buying momentum
Can Bitcoin hit €100k?
A bold prediction was made by Dan Morehead, CEO, and co-chief investment officer at Pantera Capital, a blockchain hedge fund. According to him, bitcoin is ahead of Pantera’s forecast schedule and is on track to hit €100,000 this summer. The prediction is based on a stock-to-flow model, an analytical framework that values how much an asset is worth based on its annual production.
“Bitcoin is now ahead of our April 2020 forecast schedule — to hit €100k this summer,” Dan Morehead wrote in Pantera’s March letter on Wednesday. According to the model described in the letter, in order for the target to be met, the world’s largest coin by market cap will need to climb gradually by roughly €8.5k per month so that in August the price could land above €100,000, around a 100% gain from the current market price.
Dan Morehead’s Predictions
Dan Morehead, in his letter, also addressed key issues in the current market environment such as inflation and Fed’s role in keeping the economy afloat. “The Fed’s CPI target includes mostly things of infinite supply – flat-screen TVs, flip flops. With massive slack in the global economy, it’ll be hard to see inflation in those things. That’s why I’m convinced the Fed will keep their foot on the gas pedal way past the time…” Pantera’s CEO said.
At the time of publishing the letter, bitcoin was trading near its weekly lows of around €54,000. Since then, the digital asset has recovered and even reached a session high of $60,000 on Thursday before sliding a bit. Bitcoin has been gaining more and more institutional backing this year with financial giants such as Goldman Sachs, JPMorgan, and Morgan Stanley ready to join in the crypto frenzy.
Dan Morehead, who founded Pantera Capital as the first US blockchain investment firm, has served as head of macro trading for one of the pioneer hedge funds, Tiger Management. Prior to that, Mr. Morehead had worked as a trader at Deutsche Bank and Goldman Sachs.