Pantera Capital Management, a leading investor in the cryptocurrency sector, with “great confidence” he claims that bitcoin has already reached its local bottom. The Fund assumes that the $6500 is a low point of the current bear market, and in the next 12 months the cryptocurrency expect new price records. This is stated in a letter published by the company.
Pantera Capital believes that the recent sell-off was partly linked to “unintended sale to reduce tax liabilities”. The letter describes a hypothetical scenario in which the trader “was a great year, during which he actively sold the cryptocurrency, and then the spring came, and the tax invoice showed that every profitable transaction is now subject to tax, which you need to pay until April 15”.
According to estimates Pantera, last year, the capital gain is $300 billion, and the reason for the sale of bitcoins would be that traders can quickly withdraw money from the market, to reduce its debt obligations.
The company also notes that the recent news about the Commission on securities and stock exchanges of the USA has had a minimal impact on market sentiment. “The fact that the market did not react negatively, suggests that we have reached the local if not world-bottom”, – said the Fund.
Although the company does not exclude the possibility that bitcoin price can drop below $6500, Pantera Capital analysts predict that in most days of the subsequent 12 months the cryptocurrency to be traded at a rate exceeding this level.
The Foundation also argues that in the course of the year the bitcoin price is likely to exceed its previous historical record set at $20 thousand. The main growth driver will be the institutional capital.
In addition, in a letter to Pantera it is noted that recently the exchange rate of bitcoin fell below the 200-day moving average. The Foundation has named this indicator “rare buy signal,” adding that historically, “if you invest $100 in a day when bitcoin price falls below that level, and sell a year later, your total income is 285%”.
We will remind that according to forecasts of the venture investor and Bitcoin enthusiast Tim Draper (Tim Draper), bitcoin price will reach $250 million by 2022.
This well-known financial analyst Tom Lee (Tom Lee) continues to say that this year, bitcoin can easily grow two or even three times. According to him, beginning in 2018, Scripturally will continue, and the price of bitcoin to the end of the year may reach $25 thousand.