• Pantera Capital, an American hedge fund with $3.5 billion AUM, predicts that Bitcoin’s price may reach as high as $148,000 post halving in 2024.
• The prediction was made using the Stock-to-Flow (S2F) ratio to evaluate scarcity and its effect on pricing trends across each halving event.
• The Bitcoin halving event is a model crafted to control the supply of tokens and impact its value; it happens every four years and the next one is scheduled for April 20th, 2024.
Pantera Capital Predicts Skyrocketing Price for Bitcoin Post Halving
American hedge fund Pantera Capital has predicted that the leading token’s price may run into six figures in the near future after the next halving event in 2024. The crypto fund currently boasts of $3.5 billion worth of Assets Under Management (AUM).
Stock-to-Flow Model Used To Evaluate Scarcity
The prediction was arrived at after using the Stock-to-Flow (S2F) ratio as a price model to evaluate and predict future pricing trends across each halving event. Utilizing this theory, BTC valuation was considered against its scarcity and then further contrasted its circulating supply with its annual production flow. According to this data, it becomes more likely that its value will appreciate over time due to diminishing issuance rate through consecutive halvings.
Bitcoin Halvings Impact Price of Token Significantly
Markedly, the BTC halving event is not until 243 days from now, but when it does happen it significantly impacts the token’s value. This event happens every four years with the last one being in 2020; this iteration is scheduled for April 20th, 2024 during which block rewards are slashed resulting in decreased supply entering market circulation. At present block reward per block stands at 6.25BTC which will be reduced to 3.125BTC posthalving causing approximately 450BTC to be mined daily instead of 900BTC prior to this decline. Immediate effects were seen following 2020’s halving where prices jumped by more than 23%.
Judge Analisa Torres’ Ruling Further Positively Impacts Bitcoin Prices
Apart from the upcoming halving events other positive news such as Judge Analisa Torres‘ ruling positively impacted Bitcoin prices recently too; her ruling declared that Ethereum (ETH) should be treated as a commodity according to CFTC regulations instead of just another security thereby granting legal status allowing more investments into ETH related products and services without fear or ambiguity regarding their legality or lack thereof regarding US law enforcement agencies like SEC or CFTC respectively .
Conclusion: Increased Scarcity Drives Up Value
In conclusion increased scarcity drives up value and given previous history combined with current data projections it looks like Pantera Capital’s predictions could well become reality for Bitcoin holders come 2024 posthalvings coupled with other positive developments around various cryptocurrencies .