Recently a letter was released by Pantera Capital. It is an investment firm according to whom BTC Prices might Rise within 12 Months. They have predicted that $6500 will comprise the low of the current bear market and that the markets are likely to break into new all-time highs within 12 months. This firm functions only in the distributed ledger technology and cryptocurrency sectors.
According to the firm the recent sell-off is partly because of the “unintended tax selling.” To explain this they make up an example where a crypto trader has had a “great year [..] actively selling”. Then, “Come the spring their tax account tells them that every sale at a profit created a taxable gain with taxes due by April 15th.” “There were $300 billion of capital gains created last year,” this highlights the high chances that “a decent chunk” of sell-off might be due to these traders withdrawing money to satisfy their tax obligations.
The firm points out that “news about the [United States Securities and Exchange Commission (SEC)]” had very little impact on market sentiment. “[T]he fact that the market didn’t react negatively suggests we’ve reached a local, if not global bottom.” In the firm’s opinion, the fact that the markets moved upwards in the “subsequent 24 to 48 hours” after the SEC’s announcements depicts that the markets have “reached peak negativity,” indicating “at least a midterm bottom.”
Pantera Bullish Long Term
Pantera’s prediction is that $6,500 is “likely the low for this bear market,” although “It could briefly go below that […] the vast majority of the next 365 days will be above that price.” Also “It’s highly likely” for that the price of bitcoin will surpass its previous record high of $20,000 “within a year,” and that “A wall of institutional money will drive” this increase in value.