The popular crypto fund manager, Dan Morehead, Founder and CEO of Pantera Capital, recently made a bullish forecast on the price of Bitcoin in a letter to Investors. He said, “If history were to repeat itself, Bitcoin would peak in August 2021 at $115 212.”
Nairametrics understands that if this should happen, the implication is that Bitcoin would become the most financially valuable asset known to man; surpassing gold and diamond.
Note that price swings in Bitcoin occur when halving is anticipated, an event that happens every 4 years to reduce the rate at which new tokens are produced. Halving was originally designed to curb inflation.
Meanwhile, Bitcoin plunged about 10% yesterday, according to data coming from Coinmarketcap, its highest one-day plunge since March 12. It has lost about 13% from Friday’s trading price at above $10,000 and traded at $8,705 earlier on Monday.
The bearish fall pushed Bitcoin’s market capitalization value down to $159.95 billion. At its highest point, Bitcoin’s market capitalization value was $241.2 billion.
Bitcoin traded in a price range of between $8,850 and $9,570 in the last 24 hours at the time of writing this report.
In the last seven days, Bitcoin has seen its value climbing, as it rose more than 5%. The volume of coins traded in the last 24 hours to the time of writing stood at $49.7 billion according to Coinmarketcap.
Still thinking about whether you need Bitcoin in your investment portfolio? Well, Morehead came up with an explanation when he said:
“One of our principal arguments for bitcoin in a portfolio is that it has had a 209% 9-year compound annual growth rate with essentially zero long-term correlation to stocks, bonds, oil, and other asset classes. From a Portfolio Theory perspective: If you can find something that goes up in the biggest crisis in a century, you should have some of that in your portfolio.”