Pantera Capital: Bitcoin Price Will Reach $67,500 by End of 2019

Siamak Masnavi

On Friday (27 July 2018), blockchain-focused investment firm Pantera Capital Management revealed via a blog post that Pantera Bitcoin Fund had generated a return of 10,136.15% (net of fees and expenses) over the past five years; it also said that it expected the Bitcoin (BTC) price to reach $67,500 by the end of 2019.

Pantera was founded in 2013 by former trader and hedge fund manager Dan Morehead, who is the current co-chief investment officer and CEO. It has over $700 million in assets under management (across two venture funds and four cryptocurrency funds).

Pantera's Bitcoin Fund had its five-year anniversary this month. So, the firm thought it would be interesting to share, via two emails sent out to investors by the CEO in 2013, the basis for its original (and still going strong) belief that Bitcoin would become a global currency and revolutionize how we deal with cross-border payments. Below, we highlight a few key sections from these two emails (we have used bold face used for emphasis).

Email Dated 21 August 2013 (With Bitcoin at $104.48)

  • "I wanted to share my strong conviction that bitcoin is about to melt-up... I believe bitcoin will explode through $200 within the next 6–8 weeks."
  • "I was discussing bitcoin with an investor yesterday and he replied somewhat dismissively “It’s just like buying gold”. No, it’s like buying gold in 1000 B.C. 99% of the financial wealth has yet to address bitcoin. When they do, bitcoin is either going to be worth zero or $5,000 /BTC."
  • "It’s the first global currency since gold."
  • "It’s the first borderless payment system ever."
  • "If you plan to invest/invest more in bitcoin, it’s my opinion that 'now' is better than 'later'."

Email Dated 6 November 2013 (With Bitcoin at $253.69)

  • "I helped our Pantera Bitcoin Fund execute a million dollars overnight. The buying pressure on bitcoin was intense. Bitstamp’s 30-day volume is 4x what it was in July. Their overnight volume set a new record $13mm — 10x a typical day in a few months ago."
  • "In my opinion, it’s like deciding whether to buy Microsoft back in the day at $0.20 a share. It was hard to do when the stock was just at $0.10. In the fullness of time…clearly a great trade. I believe bitcoin right now is just like that."
  • "Now that Silk Road is gone, a new wave of sophisticated investors are entering. It feels like it’s happening. A melt-up which could be orders of magnitude."

Bitcoin Price History

Pantera says that if we look at a chart that plots Bitcoin's price since July 2010 in log scale, we would see that the Bitcoin price shows "very consistent exponential growth":

Pantera chart.png

Pantera says that projecting price through the end of 2019 using the historical trend line (shown in gold) would lead us to expect a BTC price of $21,000 by the end of 2018, and $67,500 at the end of 2019, and that, in fact, these are their current forecasts for Bitcoin.


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Bitcoin Will Consolidate Between $7,000 and $10,000, Says Billionaire Investor Mike Novogratz

Francisco Memoria

Billionaire investor Mike Novogratz has recently predicted the price of bitcoin will consolidate between the $7,000 and $10,000 marks, although he admitted there’s a lot of excitement in the space, which could see the cryptocurrency’s price go higher.

According to Bloomberg, Novogratz’s words came during a conference call discussing the first-quarter financial results of his firm Galaxy Digital. During the call, he stated:

On a go-forward basis, Bitcoin probably consolidates somewhere between $7,000 and $10,000. You know, trees don’t grow to the sky.

The billionaire investors added that if he is wrong, he believes it’s to the upside, as “there’s enough excitement and momentum that it could carry through.” This week bitcoin’s piece briefly surpassed the $9,000 mark, before falling 10% in under six hours.

To Novogratz, the cryptocurrency’s rally in the last few months, which saw it recover from a $3,200 low, can be attributed to wider mainstream acceptance of cryptocurrencies and blockchain technology.

As examples, the investor pointed to Facebook reportedly working on its own cryptocurrency to let users transfer money through its messaging apps, and to Microsoft building decentralized identity solutions on the Bitcoin blockchain.

The former Goldman Sachs partner added:

We have gone from, you know, crypto as an experiment, is it real? Is it tulips? To crypto is going to be a substantial part of the financial and consumer infrastructure of the world.

Galaxy Digital itself is seemingly turning its situation around. Last year it saw a net loss of $134 million during the three months ending on March 31, while this year it saw net income of $12.9 million. The income was a result of realized gains on cryptocurrencies, and unrealized gains on investments.

As covered, Novogratz has noted he doesn’t believe altcoins will surge in the near future like they did in the 2017 bull run, and noted he sees bitcoin dominate the market. The billionaire investor has predicted BTC will hit $20,000 within 18 months.