Hedge Fund Looks for Bitcoin to Surpass $20,000
Pantera Capital Management says that Bitcoin has found it’s ultimate low at $6,500 in this bear market and that it should stay above that for the remainder of the year.
The crypto investment firm which began trading in Bitcoin in 2014 and now has more than $800 million in assets sent a note to investors on Thursday, April 12, saying that it has only made three buy and one sell recommendations in seven years, but they predict Bitcoin will rise to and surpass it’s previous $20,000 price high by the end of the year.
According to Bloomberg, Pantera’s Dan Morehead and Joey Krug stated in the note,
“For those who are new to Pantera who might think a fund manager like Pantera would always be saying ‘Today’s a great day to get long” I rarely have such strong conviction on timing. A wall of institutional money will drive the markets much higher.”
The prediction from Pantera Capital comes in part from Bitcoin having crossed its 200-day moving average. Referred to as the “death cross” by some economists in reference to the shape created when the 50-day moving average crosses below the 200-day moving average.
Though the term is ominous Pantera sees it as a good sign, writing in their report that “Traders often use that time period as it seems to be the optimal response time of human psychology. Long enough to stop fretting about missing the trade. Not too long that the information is lost.”
Pantera Report in Conflict with Barclays Findings
The report from Pantera Capital calling for Bitcoin to see big gains in the coming year is in direct conflict to the recent findings from Barclays Bank analysts who likened the movement of the cryptocurrency markets from the high in late 2017 to the lows at the start of 2018 to a viral breakout that has been treated.
As was reported by NewsBTC economists at Barclays created a model that examined the rise and fall of Bitcoin. They explained their methodology saying “We developed a theoretical model of an asset price with a pool of speculative investors and compared it with actual bitcoin price behavior to see what it might imply for the future dynamics”
From this, the analysts concluded that Bitcoin will continue on a “downward spiral” while hesitating to predict a fall below $6,000.
The story that first ran in the Independent balanced Barclays’ findings with the comments of former COO of Skype Micheal Jackson who said Bitcoins price lows at the moment will “will appear trivial” by years end.