In a published letter that attributed the recent sell-off as ‘unintended tax selling,’ Pantera Capital (a cryptocurrency exclusive investment firm) predicted that Bitcoin has already established its lowest bear market price and is now set to hit an all-time high in the next 12 months.
To explain the recent bear rally that has been experienced in the crypto market, Pantera hypothetically described that since most traders had a good year last year, the recent active selling-off of crypto came about as a result of crypto holders looking to make a profit.
The End of the Bear Rally
Then came the news that surprised traders that they had to pay tax since “every sale at a profit created a taxable gain with taxes due by April 15th”. With over $300 billion of 2017’s capital gains created, the pressure to sell was created and thus there was a trigger for pulling money out of the market so as to meet tax obligations.
The published letter also demonstrated Pantera’s view on the recent news about The United States Securities and Exchange Commission, with the investment firm noting that the news had little to no effect on the market sentiment. Pantera said that “we’ve reached a local, if not global bottom” and that is why the market did not react negatively as expected. Pantera’s view is that the upwards movement that saw transactional volumes skyrocket within 24 to 48 hours is an indicator of the peak bear trend being reached.
Pantera Predicts a Long-Term Bull Run
If statements from the published letter are anything to go by, Pantera considers itself to be in the “first innings of a multi-decade trade”. According to the letter, the $6500 price mark for Bitcoin is most likely the “low for this bear market”.
The letter went on further to predict that although there is no guarantee that it wouldn’t go lower, the price of Bitcoin is bound to grow in the next year. In fact, Pantera went on to predict that Bitcoin’s price could surpass its previous high of $20,000 to hit an all-time high in the near future. To drive these growth predictions, they suggested that “a wall of institutional money will drive” the predicted growth.
To further illustrate the perdition, they pointed out to a 200-day moving average that recently indicated a “rare buy signal” that is comparable with making over 200 percent in profit from buying BTC worth $100 right when the price crosses below the 200-day moving average.
With Bitcoin indicating a “rare buy signal” will you buy in and wait for Pantera’s predictions to come true? Let us know your thoughts in the comments section.