Pantera Capital Management, one of the leading investors in the cryptocurrency industry, expressed a "firm belief" that Bitcoin had found its bottom mark. The fund assumes that the price of $ 6,500 will be the lowest indicator of the current bear market, and also predict that the cryptocurrency markets are likely to reach new record highs within 12 months. They predict huge profit for long term investors and “HODLers”
Pantera Capital is an investment company operating exclusively in the industry of cryptocurrency and blockchain. The bullish prediction statement was presented in an open letter, published on the website Medium. Pantera refers to a number of factors, explaining the prediction from both fundamental, technical and socio-political aspects of the current global economy.
In particular, the letter refers to recent large sales of crypto-currencies related to the need to pay local taxes. Representatives of Pantera company claim that many traders earned good money last year in October to December rise period, but they had to "suddenly" recall the need to pay taxes on profits until April 15 of this year. The letter states that last year the income of traders amounted to about $ 300 billion. It notes that the users who had to pay taxes in the first months of this year have caused the decline of cryptocurrency market and the significant part of withdrawal of funds from the market. These users are not ordinary small “hodlers” (Bitcoin old miners and small investors), these are the major players who earned millions of dollars.
The company also notes that the recent "news" from the Securities and Exchange Commission (SEC) had a minimal impact on market sentiment. "The fact that the market did not react negatively suggests that we have reached a local, if not global, price bottom", the letter said.
Pantera also claims "high probability" that the price of Bitcoin will exceed the previous record mark of $20,000 during the year. Pantera also points to the recent drop in Bitcoin below its 200-day moving average. The company notes that this can be regarded as a "bullish" signal, which speaks of high market and price growth.