Pantera Capital, an investment firm and hedge fund, has suggested that the Bitcoin price against the US Dollar (BTC/USD) is following the stock-to-follow model’s trajectory closely. The hedge fund’s analysts believe that the BTC price would reach US$115,212 by August 1, 2021.
The parabolic rally of Bitcoin has placed the BTC price a little bit ahead of the projection of the model. Though the 28% correction in the last week sent shivers down the spine of many crypto traders, analysts believe that sharp corrections and short consolidation periods are the characteristic features of bull markets.
Their model focuses on the impact of Bitcoin halving, which happens almost every 4-years. As per the model, the impact of Bitcoin’s decreasing supply becomes present around 6-months from the date of halving. The last BTC halving happened on May 11, 2020. At that time, the BTC/USD pair was priced around US$8,000. Within 6-months, the price almost doubled to around US$15,000. It is currently on the verge of entering a parabolic rally to a new all-time high.
The model has shown that a similar trend is being followed since the last two halvings. The ongoing performance of Bitcoin seems to be between the 2012 market 2016 cycles.
If the pattern followed twice earlier is followed again, the Bitcoin price is likely to be within US$300,000 to US$400,000 in around 450-days since the last halving. The last halving took place on May 11, 2020. 450 days from the day of halving will be completed on August 4, 2021. The analysts believe that the BTC price against the USD will be between US$300,000 and US$400,000 by early August 2021.