Pantera Capital’s CEO, Dan Morehead, thinks Bitcoin is seriously undervalued. He believes it should be trading well above $120,000, maybe even hitting $126,000. He says the market isn’t reflecting some major political and regulatory wins for crypto.
Morehead’s Bullish Case
Morehead points out that Bitcoin’s price only went up 24% after the last US presidential election. That’s tiny, considering what happened:
- A pro-crypto president was elected.
- The Senate and House became more crypto-friendly.
- Several anti-crypto congress members lost their seats.
- The President issued several executive orders supporting crypto, including plans for a national Bitcoin reserve.
- Many SEC actions against crypto companies were dropped.
- The President even held a crypto summit!
Morehead argues that all this should have sent Bitcoin’s price soaring. He uses Pantera’s Bitcoin fund’s 83% annual growth rate as a benchmark, suggesting Bitcoin should have naturally increased by a similar amount. He concludes the market hasn’t even begun to reflect these positive developments.
Other Experts Weigh In
The crypto world isn’t all sunshine and rainbows, though. Recent market volatility shows that even good news can be overshadowed by other events. For example, Bitcoin dropped over 7% after President Trump announced tariffs.
BitMEX founder Arthur Hayes is cautious, suggesting $76,500 is a crucial support level. If Bitcoin can hold above that until mid-April (US tax day), he thinks the market might recover.
Charles Edwards, CEO of Capriole Investments, hints at the possibility of the Federal Reserve stepping in with expansionary monetary policy, potentially boosting Bitcoin’s price like it has in the past.
The Bottom Line
At the time of writing, Bitcoin was trading around $81,811. Morehead’s prediction of a $120,000+ Bitcoin is bold, but his argument highlights the potential disconnect between positive crypto developments and the current market price. Other experts offer a mix of optimism and caution, highlighting the inherent volatility of the crypto market.
