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In a recent statement, founder and CEO of Pantera Capital Dan Morehead predicts that Bitcoin’s price could eventually reach $740,000, Bloomberg reported.
Morehead's prediction is grounded in several key factors that he believes might drive Bitcoin's price to new highs. One of the key drivers is the changing regulatory landscape. Morehead notes that the 15-year regulatory headwinds that have previously hampered Bitcoin are now turning into tailwinds.
"People totally thought we were crazy in 2013," Morehead remarked in an interview, alluding to the founding of Pantera Capital Management's Bitcoin fund more than 11 years ago. "There are still a lot of people very negative. And that’s why I’m so bullish. So many people are still negative. It’s far from being a bubble."
Pantera's first Bitcoin fund is said to be the first to expose U.S. investors to the cryptocurrency. Bitcoin was worth $74 when the fund was first established in 2013. On Tuesday, it traded at about $92,000 after briefly approaching $100,000 at the end of last week. Bitcoin has increased by about 120% this year.
BTC price action
Bitcoin had its longest losing streak in recent weeks after failing to reach $100,000, falling to a low of $91,420 in today's trading session. The overall cryptocurrency market lost some of its $1 trillion gain since Nov. 5.
Since that date, about $7 billion has poured into U.S. spot-Bitcoin exchange-traded funds, although demand lessened, resulting in a $438 million outflow on Monday.
The largest cryptocurrency by market capitalization has dropped by 1.89% to $93,137, according to CoinMarketCap data.
With Bitcoin consistently setting new records this month, long-term holders have started selling in the spot market in increasing sums. So far, sell pressure has been offset by inflows into Bitcoin ETFs and major purchases by MicroStrategy.
MicroStrategy purchased a record $5.4 billion in Bitcoin on Monday, marking the third significant purchase by the crypto hedge fund proxy this month.