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"The price of Bitcoin will reach its historical maximum in 12 months"


Dan Morehead, CEO of Pantera Capital, believes the bitcoin price could hit a new all-time high in 12 months.

He revealed this in a recent letter to investors, in which he also stated that the current global economic crisis is unprecedented.

In this regard, he wrote:

“I have spent 35 years negotiating global macro disruptions. This is like no other. This will undoubtedly end the longest global expansion on record. It is likely to have a greater global economic impact than any recession in recent memory. "

In light of this, he believes that Bitcoin can grow in strength, particularly in the next 12 months.

However, it should also be said that Pantera Capital is a fund that specifically invests in crypto and blockchain companies, and that the CEO's predictions have proven to be wrong in the past.

Morehead continues writing:

Bitcoin was born in a financial crisis. It will come of age in this.

Now that we are in the billions, the deficit simply has to have a positive impact on the price of things that are not quantitatively easy: stocks, real estate, cryptocurrencies relative to the price of money. In other words, the BTC / USD currency exchange rate will increase. ”

However, this process may not be continuous, fast, or linear, but may progress in stages, during which large capital investors will explore several new opportunities in the face of the explosion of federal deficits in the United States.

This is where the bitcoin discussion ends:

“The bitcoin price may set a new record in the next twelve months. It is not going to happen overnight. My best guess is that it will take 2-3 months for institutional investors to sort through their current portfolio issues. Another 3-6 months to research new opportunities like distressed debt, special situations, cryptocurrencies, etc. Then when they start making allocations, those markets will really start to increase. ”

This scenario, although it is not clear how likely it could be, seems plausible, because on the one hand, the global economic recession now seems almost certain and, on the other, the large amount of dollars that will go to the financial markets in the coming months they could trigger a new bubble.

In fact, Bitcoin is designed to perform at its best in such a scenario, so, in theory, at least, you could react accordingly. However, it should be added that during the collapse of the financial markets in mid-March, bitcoin showed some correlation.

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