If you’ve been following our Bitcoin price news lately, you’ll see that after the slight surge, the leading cryptocurrency is currently stable at around $9.5K. It is constantly testing the $10,000 level, yet technical indicators don’t expect a jump right now. Currently, it’s a bears market, with each high a liquidation point for aggressive traders and stop limits above $11,000. But, according to Pantera CEO Dan Morehead, we could be in for a record high by the end of the year.
Morehead’s Predictions Too Optimistic?
During a recent podcast interview, Morehead and Joey Krug from Pantera Capital, a leading blockchain-based investment fund, said that he fully expects Bitcoin to soar to $42,000 by the end of the year. It sounds crazy to us too, but Morehead gave a pretty good explanation for it. Morehead’s prediction on the future trajectory of Bitcoin’s price was previously suggested by crypto prime dealer SFOX. SFOX’s research indicated a bullish move after the holiday season, with other major companies such as Delphi confirming that investor enthusiasm around Bitcoin has made a comeback in 2019 after a relatively quiet 2018.
These reports were the base for Morehead’s shocking claim. If this happens, and Morehead is pretty sure it will, he expects Bitcoin to rise to $356,000 in about 3 years which sounds impossible. But so did Morehead’s first research pieces on Bitcoin’s future price trajectory years ago. The Pantera CEO wrote that Bitcoin could reach $5,000 shortly when the cryptocurrency was at $100 and everyone laughed. Needless to say, he’s been right before.
Right now, it all seems like a distant, utopian idea. However, the recent $13,000 surge has crypto enthusiasts on their toes. Sure, the bearish market right now keeps Bitcoin hovering around the $10,000 mark, but if Morehead’s claims are right, we could be in for a big surprise soon.
What Does the Future Hold?
Although there’s no way of predicting the future correctly, Morehead has based his claims on Bitcoin’s price history. According to him, the Bitcoin price chart is pretty consistent over the years, with the price bubbles in 2013 and 2017 also visible on it. Earlier this year when Bitcoin was near the bottom of the market cycle, Morehead said that if it returned to its previous trend line and followed that path for several years, the annual growth rate would be 253%.
Follow that line and we get to $42,000 by the end of 2019, over $120,000 by the end of 2020, and an astonishing $365,000 by the end of 2021. Music to cryptocurrency owners’ ears.
The positive change in direction for Bitcoin this year was probably caused by indirect help from Facebook who recently launched its own crypto project Libra. President Trump’s recent tweets on Bitcoin also moved the scale. Although he didn’t specifically say anything good or bad about the cryptocurrency, it surely moved the scale in Bitcoin’s favor. If the price goes up just like Morehead expects to, we could be in for an exciting last quarter of the year.