Nov 22, 2022 at 06:26Pantera Capital decided to buy almost $140 million worth of Bitcoin amid the panic in the market and the prolonged crypto winter. In addition, the CEO of this hedge fund, Dan Morehead, publicly explained the logic behind his fund’s behavior by predicting a Bitcoin rally in 2024 and its reaching a new ATH.
Why is a bull market ahead?
Dan Morehead in his new Twitter thread (paraphrase) very clearly described what is going on in the crypto market and why they expect a Bitcoin rally in 2024 despite the current problems. He noted that the company was expecting the crypto market to fall at the end of this year, but further expects a BTC rally after the next halving. We partially described these predictions of the head of Pantera Capital in another of our earlier articles.
This time, while in the midst of crypto winter, he states:
The next halving is projected to occur in April 2024. The mining reward will decrease from 6.25 BTC per block to 3.125 BTC per block. Efficient Markets Theory would hold that if we **all** know it’s going to happen, then it has to be priced in.
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If history were to repeat itself, the price of bitcoin would trough at the turn of the year. We would then see a rally into early 2024 and then a strong rally after the actual halving.
He also provides a chart showing the cyclical nature of Bitcoin’s price rise as a function of halving:
In other words, this historical pattern can be formulated in words like this:
If Bitcoin reaches a price of $36k by the next halving (early 2024), it will have a very high chance of reaching $150k in 2025.
A big buy amidst the panic
To prove his words and predictions, while the rest of the market is panicking and counting losses, a hedge fund founded by Dan Morehead bought $137 million worth of Bitcoins in a deal involving 141 accredited investors with a minimum investment of $50,000.
This is a pretty big and bold deal against the background of a frightened and falling market, which has also managed to gather interested accredited investors for this purchase.
🏛 Media reports that Pantera Capital fund bought BTC for $137 million – 141 accredited investors participated in the transaction with a minimum investment of $50,000.
Earlier this week, Pantera Capital's CEO said the company expects a BTC rally in 2024 after another halving. pic.twitter.com/0E3XVupKzU
— ImNotTheWolf (@ImNotTheWolf) November 19, 2022
How can I make money on this?
As you can see from the theory above, Pantera Capital is confident in a significant rise in the price of Bitcoin in about 1-2 years. Moreover, this hedge fund has confirmed its bet with money by buying crypto at the very bottom.
In fact, if halving’s theory is correct, now is the most convenient entry point into Bitcoin — as Buffett always taught, it is most profitable to buy the asset in the midst of market chaos and panic. Do not miss the opportunity to profitably become a hodler with an investment of at least 1-2 years (you should read about the advice of the famous Wolf from Wall Street).
However, as always we stipulate — this is not ready-made financial advice, make all monetary decisions on your own, soberly assessing all your risks and opportunities.
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