Bitcoin to Hit $115,000 By Mid Summer 2021, Predicts Pantera Capital In Latest Investor Report
The investment firm also sees Ether and DeFi as “undervalued relative to their long-term potential.”
Bitcoin made a new all-time high at nearly $62,000 this past weekend, but according to Pantera Capital, the leading digital asset is on the way to “hit $115k this summer,” in August, to be exact. Also, $100k is expected to first surpass by the mid of July.
The core thesis of this six-figure price forecast is unlimited money printing which will continue to push up the price of things “whose quantity cannot be eased.”
All of this money printing by central banks all over the world and lockdowns have left rich-world consumers with considerable savings and pent-up demand. In the United States, we saw the savings rate soared to 16.0% in the third quarter of 2020, up from 13.4% in the fourth and 7.6% in 2019, notes the letter.
All of this now points to inflation, about which the market is really concerned.
Inflation is now the biggest tail risk to the economy over anything COVID-19 related. pic.twitter.com/VVdovaQVvr
— Joe McCann (@joemccann) March 16, 2021
According to Pantera Capital, there will be massive inflation in things where quantity cannot be eased, such as gold, real estate, and bitcoin.
And the best proof of this thesis is the S&P 500, which continues to rally to a new record high; just this Monday it hit another one, despite the Q2 2020 earnings down 32.3% from a year prior.
This is “entirely a monetary phenomenon,” and the Federal Reserve Chair Powell has clearly stated there is literally “no limit” to QE money. So, things can definitely go up forever.
This flood of dollars in the market, however, will push the value of the dollar down. This is unlike Bitcoin, whose monetary policy is mathematical by design and cannot be “Quantitatively Eased” by a central authority.
But it is not all Bitcoin; the second-largest cryptocurrency has just as much potential, on which the entire DeFi ecosystem is built on. And despite Ether being close to its ATH, Pantera Capital believes both ETH and DeFi assets “are undervalued relative to their long-term potential.”
DeFi assets that are out-performing even the remarkable performance of bitcoin are also emerging in Pantera’s hedge funds' returns.
“We believe we are at the beginning of a multi-decade transformation,” it states.