Pantera Capital’s CEO Dan Morehead made an unusual and bold assertion about Bitcoin’s value, suggesting it should trade at over $126,000 and possibly beyond due to recent political and regulatory shifts not yet fully factored into its current market price. His reasoning: These changes haven’t yet been taken into account by its current market price.
Is Bitcoin’s Price Misunderstood?
Morehead contends that Bitcoin has experienced only a minimal increase following the US presidential election, noting several political and regulatory developments that, according to him, should have caused much higher prices: such as having elected a pro-cryptocurrency president; significant congressional shifts; numerous presidential Executive Orders to enhance crypto landscape and other beneficial regulatory actions.
Morehead believes that, were these developments appropriately priced in, Bitcoin’s growth rate of 83% compound annual growth since inception would put its value well above $126,000. His perspective comes despite market instability – Bitcoin dropped more than 7% following announcements of new economic policies by US government officials earlier this month.
Industry leaders such as BitMEX’s Arthur Hayes have spoken out about the unpredictable nature of cryptocurrency markets. Hayes suggests maintaining $76,500 as an important support level for Bitcoin; keeping above this mark could signal more stability going forward. Meanwhile, Charles Edwards of Capriole Investments speculated on Federal Reserve action stimulating the economy – something which historically tends to favor high-risk assets like Bitcoin.
As of its latest update, Bitcoin’s trade value stands at $81,811, keeping investors and enthusiasts waiting to see whether Morehead’s predictions come to fruition.
