Pantera Capital Management, one of the leading investors in the industry of cryptocurrencies, expressed his «firm conviction» that the bitcoins have found their bottom mark. The Fund has suggested that the price in 6 $ 500 will be the low of the current bear market, and predict that markets are more likely to reach new record highs within 12 months.
About Pantera Capital, an investment company operating exclusively in the industry of cryptocurrency and blockchain, said in a letter published on the website Medium. Pantera refers to a number of factors, explaining his prediction.
In particular, the letter refers to the recent large sales of cryptocurrencies related to paying taxes. The firm’s representatives claim that many traders are well earned last year on the race courses, however, they had «suddenly» remember about the need to pay income taxes until April 15 of this year. The letter alleges that last year the income of traders amounted to about $ 300 billion and it is noted that for a significant part of the withdrawal from the market responsible it users, who have been paying taxes in the first months of this year.
The company also notes that the recent «news» from the Commission on securities and stock exchanges of the USA (SEC) has had minimal impact on market sentiment. «The fact that the market did not react negatively, suggests that we have reached the local if not the global price floor», the letter reads.
In addition, the statement noted that the price in 6 $ 500 «will probably be the low for this bear market,» and predicted that although «it may briefly fall below this level in the vast majority of days in the year, the cost of bitcoin will be above this line.» Pantera also claims a «high probability» that the price of bitcoin will exceed the previous record level of $ 20,000 during the year.
Pantera also points to the recent bitcoin drop below its 200-day moving average. The company noted that this can be interpreted as a bullish signal, talking about the imminent growth of the market.