Crypto hedge fund Pantera Capital has revealed in a new post that its Patnera Bitcoin Fund’s lifetime return has recently topped 131,000% net of fees and expenses after the price of the flagship cryptocurrency Bitcoin surged to near $100,000 after the US elections.
In the post, Pantera Capital’s CEO Dan Morehead shared an email forecasting back in July 2013, when Bitcoin was trading at $65, that the “bitcoin washout happened” and predicting the price of the cryptocurrency would surge over time.
The email notes he was going to “buy 30,000 bitcoins” with his own personal money at a time in which the cryptocurrency’s market capitalization was around $740 million. Given the small size of the cryptocurrency market at the time, Morehead noted that in 2013-15, the fund “bought 2% of the world’s bitcoins.”
To Morehead, buying Bitcoin at the time was like “buying gold in 1000 B.C.” as then “99% of the financial wealth has yet to address bitcoin.” He noted that the industry has made progress and now believes 95% of the financial wealth “has yet to put their full-sized position on.”
The CEO added that the catalyst for the figure to keep on dropping has “just happened: regulatory clarity in the United States” at a time in which massive “institutional managers like BlackRock, Fidelity, and others are now offering incredibly cheap, efficient access to anyone with a brokerage account. “
As a result, he predicted the price of Bitcoin will move to $740,000 per coin, up from its current level around $95,000. The surge would see Bitcoin’s total market capitalization hit $15 trillion, which to Morehead isn’t an inconceivable number relative to the $500 trillion in financial assets.
Per his words if Bitcoin’s price growth were to continue it would hit the $740,000 mark in April 2028.
Featured image via Unsplash.
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