Big bitcoin price predictions keep entering our midst, with the latest one coming from Dan Morehead, the CEO of Pantera Capital.
Morehead: BTC Will Surge Past $20,000
While Morehead doesn’t push bitcoin into the six-figure range like Tim Draper or Ross Ulbricht have done in recent months, he’s confident BTC is set to accomplish big goals. He believes that by early 2021, the price of bitcoin will have surged past the $20,000 mark.
Bitcoin almost reached this peak in December 2017. Just shy of the Christmas holiday that year, bitcoin had surged past the $19,000 mark. Many people thought $20K was right around the corner, and while the world’s number one cryptocurrency by market cap never quite hit that plane, it came awfully close.
Many people have remained confident over the years – despite several ups and downs for the asset – that since bitcoin came this close before, it would do so again. Many have even stated that the currency would surpass this level with ease, though present circumstances place bitcoin’s future under a very fragile lens.
At the time of writing, bitcoin is trading for just over $6,600. While this is considerably better than where it was two weeks ago (the currency had dropped into the high $3,000 range, thereby losing close to two-thirds of its value since last February), there’s still plenty of room for improvement considering BTC was trading for well over $10,000 during the previous month, and this $10,000 figure is only about half of bitcoin’s 2017 peak price.
Economic downturns have occurred across all sections of the globe in recent weeks given the growing panic and fear surrounding the coronavirus. Morehead believes this fear will give bitcoin its power, as more people will turn to it to potentially hedge against inflation. In an interview, he states:
Bitcoin was born in a financial crisis. It will come of age in this one. Now that we’re in the trillions, the deficit just simply needs to have a positive impact on the price of things not quantitatively erasable – stocks, real estate, cryptocurrency relative to the price of money. Said another way, the BTC/ USD cross-currency rate will rise.
Bitcoin’s birth in 2008 stems from the Great Recession that the world was facing during that time. Thus, it would be befitting that bitcoin would find its home with investors and reach a new pinnacle during times of a similar crisis.
The Current Crisis Could Work for BTC
The price of bitcoin may set a record in the next 12 months. It’s not going to happen overnight. My guess is that it will take institutional investors two three months to triage their current portfolio issues. Another three to six months to research new opportunities like distressed debt, special situations, crypto, etc. Then, as they begin making allocations, those markets will begin to rise.