Dan Morehead, chief executive officer (CEO) of Encryption Investment Company and hedge fund Pantera Capital, believes that bitcoin price movements may reach $42,000 by the end of the year.
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Bitcoin price trend lines can bring huge benefits
On July 23, Dan Morehead said in the latest episode of the Unchained podcast that the company will stick to its credible bitcoin price analysis to determine future performance.
He confirmed that this includes a possible $326,000 in 2021 if the BTC/US dollar maintains a historical compound annual growth rate.
At the bottom of the bear market in 2018 (bitcoin minimum reached $3,100), Pantera considered how growth would look if Bitcoin prices returned to historical trend lines and maintained this performance for years to come.
"This makes Bitcoin likely to reach $42,000 by the end of 2019. I know it sounds crazy, but in fact we have already returned to half," Morid said.
"Bitcoin is on this trend line, I think it is very likely that by the end of this year, we will reach this level, and if you push this line for another year, it will become $122,000 per bitcoin, and then It will become $356,000 in a year."
Morehead: The market will accept “crazy” price increases
The fluctuations in Bitcoin in recent weeks have caused analysts to worry that they are already thinking about where the bull market, which began in April this year and lasted for three months, will end.
At the time of writing, the trading price of Bitcoin was slightly lower than $10,100, which was much lower than the recent high of $13,800. This situation even casts doubt on the end of another forecast model given $21,000.
The support of $9,800 is the only factor preventing the market from falling further this week, as traders lose about 11% per month.
However, for Morehead, the psychological factors behind the rise in bitcoin prices have proven its essence.
"… ($42,000, $122,000 and $356,000) sounds crazy, but when we first wrote the bitcoin research price, we expected it to go to $5,000. When Bitcoin was $100, everyone thought It's totally crazy, but these numbers, after 2 or 3 years, people look back, hey, yes, that makes sense," he continued.
Similar logic may have an impact on some of the most daring bitcoin price forecasts on the market today, including John McAfee's notorious bitcoin, which will cost $1 million in forecast bets.
Other factors, such as investor Tim Draper, have given Bitcoin $250,000 before 2023, and have ensured that Morehead is not the only one who is promising.