The hedge fund Pantera Capital estimates that Bitcoin’s trajectory will take it to $115,212 by next August. Thus, the sharp corrections of the previous week would be normal.
The value of Bitcoin has been on an erratic course over the last few days. Cryptomoney is currently characterized by very high volatility. Last week, the BTC suffered a major correction.
This is enough to call into question the scenarios of a Bitcoin worth more than $100,000 this year? This is not the opinion of Pantera Capital analysts. An investment firm and hedge fund, it predicts a BTC of $115,212 by August 1.
The impact of the halving of 2020 driving the rise
Pantera estimates that cryptography currently follows the trajectory defined by the stock-to-follow model. This hypothesis is thus in line with PlanB’s hypothesis. On Twitter, the analyst expects a price between $100,000 and $288,000 by December 2021.
Why then such corrections? Because Bitcoin is rising too fast. Its value thus exceeded the projection of the S2F model. However, Pantera Capital believes that sharp corrections and consolidation phases are characteristic of a bull market.
As a result, Bitcoin is expected to continue to rise over the next few months until it reaches the $100,000 mark. More cautiously, the CEO of Binance US, Catherine Coley, anticipates a price between $75,000 and $100,000 by the end of 2021.
However, she does not claim to be a stock-to-follower. For her estimates, the model is based on the impact on the price of halving. This event consists of dividing the premium for mining new blocks by two.
Bitcoin and Ether concentrate the value
Each halving thus contributes to increasing the scarcity of cryptomony. And according to the S2F model, the price impact appreciates after a period of about 6 months. Bitcoin’s current performance would thus be between the 2012 and 2016 market cycles.
Translation: the price of Bitcoin could reach $300,000 to $400,000 about 450 days after the last halving. At least that’s the theory. But to explain the growth of the cryptomarket, Pantera also relies on other parameters.
It should be noted, however, that this increase mainly benefits Bitcoin and Ether (ETH), which concentrate the value. Institutional investors are so far opting for the two most mature crypto-actives to invest in cryptography.
« This rally is different. According to PanteraCapital, there will be a massive switch from highly speculative and non-functional tokens in 2017 to #Bitcoin and #Ethereum today, » says Visa executive Andy Yee on Twitter.
In fact, Bitcoin and Ether account for 86% of the value. The other 5,000 blockchains weigh only 14%. At Bitcoin’s previous ATH in 2017, the top two cryptomonnages accounted for 52% of the value. Consolidation has therefore increased since then.