Bitcoin (BTC) and Ether’s (ETH) growing dominance of the market suggests the current bull run is unlike the previous ones, and Bitcoin could surge to $115,000 by August
New data from hedge fund Pantera Capital suggests Bitcoin’s current bull cycle will continue for a while and will see the cryptocurrency touch $115,000 by August. According to Pantera Capital, Bitcoin’s current price action follows the stock-to-flow model’s trajectory and analysts think that the leading cryptocurrency is set to rise to $115,000 over the coming months.
Pantera Capital said the halving event usually has a significant impact on the cryptocurrency’s price, and it is still on track to reach the previously set target of $115k. “Our analysis was based on comparing the reduction in the supply/flow of bitcoin relative to the outstanding stock—at the time of each halving—and the subsequent impact on price”, the report added.
BTC recorded a price increase of over 400% in 2020, smashing the $40,000 mark at the start of the year. However, the 28% correction witnessed last week caused certain concerns in the market, but Pantera Capital analysts maintained that the sharp corrections and short consolidation periods are seen in every bull run.
According to the Bitcoin halving model, the impact of decreasing Bitcoin’s supply starts showing roughly six months after the halving event. Following the Bitcoin halving in May, Bitcoin’s price surged from $8,000 to above $15,000 within six months. The rally continued, and Bitcoin broke several records along the way.
Pantera explains that “Bitcoin has historically bottomed 459 days beforethe halving. The price has then climbed leading into the halving date and then exploded to the upside afterwards. The post-halving rallies have averaged 446 days—from the halving to the peak of that bull cycle”.
$115k target is attainable
The above chart shows Bitcoin’s price performance and how it relates to Pantera’s earlier prediction. Despite the slight correction last week, the cryptocurrency is on course to reach the desired target.
Dan Morehead, Fox Business, told Pantera Capital that he believes the target could be achieved. “I’m not saying I’d bet our life savings that’s definitely going to happen, but I think it’s possible, and we’re right on pace to do that”.
Bitcoin rising to $115,000 by August would represent a surge of more than 300% over the next few months. This massive price movement is possible, considering Bitcoin is up by more than 500% in the past year.
