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.

 

Featured Image Credit: Photo via Pexels.com

Jamaica’s Stock Exchange to Pilot Bitcoin, Ether Live Trading

The Jamaica Stock Exchange (JSE) is reportedly set to pilot bitcoin (BTC) and ether (ETH) live trading in the near future, thanks to a partnership it has with Canadian fintech firm Blockstation.

According to a recently published press release the Jamaica Stock Exchange and Blockstation have entered an agreement to enable the live trading of cryptocurrencies – including security tokens – in a safe, regulated environment.

The agreement was signed after both organizations conducted a “successful live-trading pilot” that included regulated broker-dealers, market markets, and the Jamaica Central Securities Depository (JCSD). In the document Marlene Street Forrest, the JSE’s managing director, was quoted as saying:

This is an unprecedented opportunity for the JSE to diversify its product offerings and attract new listings and inbound investments. We welcome retail investors and companies both locally and around the globe to trade digital assets under a safe, efficient and transparent regulatory framework.

The new agreement is set to help both Blockstation and the Jamaica Stock Exchange support international small and medium enterprises (SMEs) by “providing them with a streamlined and simple process for raising capital in a compliant and transparent manner through security token offerings (STOs).”

The partnership’s goal is to also show the financial community cryptocurrencies can be safely traded through “trusted broker members like any other security, in full compliance with regulations.”

The bitcoin and ether trading pilot will see broker-dealers sign up and onboard retail investors, that’ll have to go through a know-your-customer (KYC) process to comply with local regulations.

Blockstation’s co-founder and chief enterprise architect, Jai Waterman, noted in the document digital assets are the “future of capital markets” and that the firm’s solutions pave the way for “traditional financial institutions to easily adopt this new, game-changing asset class.”

The Jamaica Stock Exchange was notably planning to launch crypto asset trading by the end of last year.