Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving

Quick take:

  • Bitcoin (BTC) recovered $ 9,000 in 5 days up to half.
  • Pantera Capital CEO Dan Morehead sees a scenario where BTC reaches $ 115,212 in August 2021.
  • His analysis is based on shifting the stock-to-flow ratio across each half.

The hype and excitement surrounding the semi-Bitcoin event is once again evident in BTC’s current price. At the time of writing, Bitcoin has just broken the $ 9,000 and $ 9,100 resistance levels and is currently trading at $ 9,261 with 5 days to halfway through. A brief analysis of the BTC / USDT 6-hour chart shows interest buying again as we approach the mid-May 12-day estimate.

Pantera Capital CEO: Bitcoin (BTC) may reach $ 115k after mid-14
6-Hour BTC / USDT Charts courtesy of Tradingview.com

Pantera Capital CEO predicts Bitcoin (BTC) could reach $ 115k after halfway through

With Bitcoin with only half a day left, Pantera Capital CEO Dan Morehead has forecast that BTC could reach $ 115,212 by August 2021. His analysis is based on shifting the stock-to-flow ratio in each half. Morehead made the prediction via twitter and further explained his analysis through an informative blog post. His tweet can be found below.

Highlighting key points from his average announcement, Morehead explained how the decline in BTC supply after each half will affect Bitcoin prices.

A potential framework for analyzing the impact of half is to study the change in stock-to-flow ratio across each half. The first half reduced the supply by 15% of the total bitcoins. That has a huge impact on supply and it has a huge impact on prices.

The impact of each successive half on price is likely to decrease in importance due to the ratio of supply reduction from the previous half to the next decrease.

In addition, his analysis goes into detail about the impact that each half has on the value of Bitcoin.

The second reduced supply by only a third, as in the first. Very interestingly, it really affects a third of the price.

Extend this relationship to 2020:

The supply reduction is only 40% as great as in 2016. If this relationship is maintained, it will show a price boost of about 40% – bitcoin will top at $ 115,212 / BTC.

Pantera Capital CEO: Bitcoin (BTC) may reach $ 115k after mid-15
Photo of Pantera Capital on Medium.com

What is the stock-to-flow ratio?

Stock-to-flow ratio is a measure traditionally used to measure the richness of a commodity. It is calculated by dividing the quantity of goods in inventory by the amount produced each year.

In the case of Bitcoin, it is calculated by dividing the supply of Bitcoin currently known by the BTC miner annually. At the time of this writing, there are about 18,365 Bitcoin already mined with an annual production of 657,000 BTC per year. This results in a stock-to-flow ratio of 27.9.

(Feature image by Unsplash.)

Disclaimer: This article is not intended to provide financial advice. Any comments made here are those of the author and do not necessarily represent the views of Ethereum World News or its other authors. Do your own research before investing in the many cryptocurrencies available. Thank you.



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