• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Bitcoin
  • Ethereum
  • Litecoin
  • Ripple
  • Blockchain
  • Guides
  • Mining

Bitcoin News Feeds

Bitcoin Club

Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving


Quick take:

  • Bitcoin (BTC) has once again reclaimed $9,000 with 5 days until halving. 
  • Pantera Capital’s CEO, Dan Morehead, sees a scenario where BTC hits $115,212 by August 2021. 
  • His analysis is based on the change in the stock-to-flow ratio across each halving. 

The hype and excitement surrounding the Bitcoin halving event is once again evident in the current price of BTC. At the time of writing this, Bitcoin has just broken both the $9,000 and $9,100 resistance levels and is trading at $9,261 with 5 days until halving. A brief analysis of the BTC/USDT 6-hour chart reveals that there is renewed buying interest as we draw closer to the estimated halving date of May 12th.

Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving 14
6-Hour BTC/USDT chart courtesy of Tradingview.com

Pantera Capital CEO Predicts Bitcoin (BTC) Could Hit $115k After Halving

With the Bitcoin halving only days away, Pantera Capital CEO, Dan Morehead, has predicted that BTC could hit $115,212 by August of 2021. His analysis is based on the change in the stock-to-flow ratio across each halving. Mr. Morehead made this predication via twitter and further elaborated on his analysis via an informative Medium blog post. His tweet can be found below.

#bitcoin could hit $115,212 in Aug 2021 based on the change in the stock-to-flow ratio across each halving.

More details here: https://t.co/fMYDXAT5qy pic.twitter.com/02uCpVoGKN

— Dan Morehead (@dan_pantera) May 5, 2020

Further highlighting key points from his Medium post, Mr. Morehead explained how a reduction in supply of BTC after each halving, will impact the price of Bitcoin.

One potential framework for analyzing the impact of halvings is to study the change in the stock-to-flow ratio across each halving. The first halving reduced the supply by 15% of the total outstanding bitcoins. That’s a huge impact on supply and it had a huge impact on price.

Each subsequent halving’s impact on price will likely taper off in importance as the ratio of reduction in supply from previous halvings to the next decreases.

Furthermore, his analysis went on to elaborate on the impact each halving has had on the price of Bitcoin.

The second having decreased supply only one-third as much as the first. Very interestingly, it had exactly one-third the price impact.

Extrapolating this relationship to 2020:

The reduction in supply is only 40% as great as in 2016. If this relationship holds, that would imply about 40% as much price impulse — bitcoin would peak at $115,212 /BTC.

Pantera Capital CEO: Bitcoin (BTC) Could Hit $115k after Halving 15
Image courtesy of Pantera Capital on Medium.com

What is Stock-to-Flow Ratio?

The Stock-to-flow ratio is a measure traditionally used to gauge the abundance of commodities. It is calculated by dividing the amount of a commodity held in inventories, by the amount being produced annually.

In the case of Bitcoin, it is calculated by dividing the currently known supply of Bitcoin by the BTC mined annually. At the time of writing this, there is approximately 18.365 Bitcoin already mined with an annual production of 657,000 BTC per year. This results in a Stock-to-flow ratio of 27.9.

(Feature image courtesy of Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.





Source link

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Recent Posts

  • Kaspa (KAS) Has Tied with Ethereum Classic (ETC) Among HiveOS Miners March 16, 2023
  • New lolMiner 1.70 and BzMiner v13.4.0 Bring More NEXA Performance Improvements March 9, 2023
  • SRBMiner-MULTI v2.2.0 Released with Dynex Mining Support for AMD, Nvidia and Intel GPUs March 8, 2023
  • Better Mining Efficiency of ZIL with ASICs and Old Low-VRAM GPUs on Ezil.me March 7, 2023
  • Now You Can Mine KASPA (KAS) on f2pool With 500K KAS Contest for Miners March 2, 2023

Ethereum

Avast Acquires Self-Sovereign Identity Firm Evernym for Undisclosed Amount

December 10, 2021 By Leave a Comment

Bybit

This mobile gaming platform is launching a charity eSports tournament

December 10, 2021 By Leave a Comment

Bitcoin Falls Below $49K as Trading Volume Weakens, Altcoins See Red

December 10, 2021 By Leave a Comment

Advertisement

Put your ad code in here!

Tags

ADA Bank Binance Bitcoin Bitcoins Blockchain BNB BTC Cardano Coinbase Crypto Data DeFi Digital DOGE Dogecoin Dot ETH Ether Ethereum Exchange Finance Firm fund High Investors Launch Launches Market metaverse Million Mining Network NFT NFTs Platform Price Raises report support Token Top Traders Trading XRP

Footer

Legal Pages

  • Privacy Policy
  • Disclaimer

Recent Posts

  • Kaspa (KAS) Has Tied with Ethereum Classic (ETC) Among HiveOS Miners
  • New lolMiner 1.70 and BzMiner v13.4.0 Bring More NEXA Performance Improvements
  • SRBMiner-MULTI v2.2.0 Released with Dynex Mining Support for AMD, Nvidia and Intel GPUs
  • Better Mining Efficiency of ZIL with ASICs and Old Low-VRAM GPUs on Ezil.me
  • Now You Can Mine KASPA (KAS) on f2pool With 500K KAS Contest for Miners

Tag cloud

ADA Bank Binance Bitcoin Bitcoins Blockchain BNB BTC Cardano Coinbase Crypto Data DeFi Digital DOGE Dogecoin Dot ETH Ether Ethereum Exchange Finance Firm fund High Investors Launch Launches Market metaverse Million Mining Network NFT NFTs Platform Price Raises report support Token Top Traders Trading XRP

Copyright © 2023