The CEO of one of the largest cryptocurrency investment companies says he believes Bitcoin (BTC) is about to reach a long-term rally of more than $ 100,000.
In a new letter to investors, Dan Morehead says he believes that as governments push more and more money to support their economies, the contrast between fiat and fixed-stock cryptocurrencies will become increasingly apparent.
“This is a really disturbing, very confusing time. I have no idea what’s going to happen in 99% of things now. However, I strongly believe that it is almost inevitable that this will be very positive for cryptocurrency prices.
My kids always counted to 100: “Skip one, two, a few, a hundred.” It feels like we’re doing that with Quantitative Easing. QE1, QE2, skip a few hundred. As Quantitative Easing approaches infinity, it just needs to have an impact on things the amount of which cannot be reduced. “
As for Bitcoin, Morehead points to the halving, which will cut BTC’s new offering in about a week, as a key factor driving a new bull run.
“While there are only a few data points – and with the caveat that the past doesn’t predict the future – the halves coincide with price increases due to perceived and / or real supply scarcity.
The second cut cut supply by only a third as much as the first. Interestingly, it had exactly a third of the price impact. Extrapolation of this relationship to 2020: the reduction in supply is only 40% larger than in 2016. If this relationship holds, that would mean about 40% as much price boost – bitcoin would peak at $ 115,212 / BTC.
I realize that the price sounds ridiculous to some today. But $ 5,000 sounded as ridiculous as our first written price prediction when we launched Pantera Bitcoin Fund for $ 65 / BTC. ”
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