Pantera Capital Envisions Bitcoin Price Soaring to $148,000 Post-2024 Halving Event

Pantera Capital Envisions Bitcoin Price Soaring to $148,000 Post-2024 Halving Event

Pantera Capital, a prominent crypto venture fund, has presented a compelling case for Bitcoin’s price potentially surging to $148,000 following the scheduled halving event next year. The firm employs a key metric known as the stock-to-flow ratio to support its projections, suggesting that Bitcoin’s value could climb to $35,000 before the halving and then skyrocket to $148,000 after.

The stock-to-flow ratio gauges an asset’s existing supply in relation to the influx of new supply into the market. A higher ratio signifies scarcity, a factor that often leads to price appreciation. As of now, Bitcoin is trading around $26,500.

Historically, Bitcoin halving events have been accompanied by upward price movements, largely due to their influence on the stock-to-flow ratio. A halving, a programmed occurrence happening roughly every four years, slashes the rate of new Bitcoin issuance by half. The forthcoming 2024 halving is poised to reduce the per-block reward from the current 6.25 bitcoins to 3.125 bitcoins. This substantial reduction in the influx of new supply serves to amplify Bitcoin’s scarcity, potentially resulting in price escalation.

Reflecting on the 2020 halving, Pantera Capital highlighted that it curtailed the influx of new bitcoins by 43% in comparison to the previous halving and led to a 23% increase in price. Looking ahead, the next halving is anticipated to transpire on April 20, 2024. Given that a substantial portion of bitcoins is now in circulation, each successive halving is expected to yield roughly half the reduction in new supply. If historical trends hold, the upcoming halving could precipitate a climb to $35,000 before the event and an astounding $148,000 after.

Beyond the optimistic outlook tied to the halving, Pantera Capital underscores the recent XRP ruling and a BlackRock-initiated Bitcoin ETF application as formidable contributors to a bullish environment for digital assets. The firm asserts that a turning point has been reached, contending that markets can only remain suppressed for so long. Their prognosis suggests an upswing leading into early 2024, followed by a robust surge subsequent to the halving event.