Dan Morehead, the chief executive officer of Pantera Capital, a hedge fund focused on the blockchain and which boasts of over $0.8 billion in assets, has said that Bitcoin has bottomed out and its price would exceed the record high it reached late last year in the next 12 months.
Last year Pantera Capital made a return of 25,000% after Bitcoin reached a record high. According to Morehead with the price of the virtual currency having fallen drastically since then, it was an opportunity to invest.
In a note that was sent to investors Pantera Capital indicated that the low Bitcoin reached earlier this year was the bottom and that the cryptocurrency will remain above that figure for the foreseeable future.
200-day moving average
?For those who are new to Pantera who might think a fund manager like Pantera would always be saying ?Today?s a great day to get long. I rarely have such strong conviction on timing. A wall of institutional money will drive the markets much higher,? Pantera Capital Management wrote in an investor note.
Pantera Capital Management began making investments in bitcoin four years ago. In seven years the hedge fund has made one sell recommendation and three buy recommendation. The latest buy recommendation came after the crossing of the 200-day moving average by Bitcoin.
Other prominent figures who have predicted a bullish run for bitcoin include Tim Draper. According to Draper the virtual currency will have reached a price of $250,000 by the year 2022. Draper?s argument is that digital coins will in the end replace fiat currencies due to the fact that these virtual currencies are decentralized and thus not under a central authority such as a government or a central bank.
Additionally virtual currencies such as bitcoin have a fixed amount. The supply of bitcoin for instance is capped at 21 million but fiat currencies can be printed endlessly thus potentially reducing their value.
Another notable bitcoin bull is John McAfee who started antivirus software firm McAfee. According to the tech entrepreneur the price of bitcoin will reach $1 million by the year 2020. Last year in July McAfee had predicted that bitcoin would appreciate to $5,000 before the end of the 2017.
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