Pantera Capital's Founder and Chief Executive, Dan Morehead, believes that the current bitcoin (EXANTE: Bitcoin) shortage is mainly caused by big buyers like PayPal. In an interview with CNBC, Morehead said the current market demand for BTC is so huge, that buyers consume over 100% of all newly-issued bitcoins.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news
The well-known bitcoin bull believes the more institutional investors come to the crypto market, the more bitcoin's price will squeeze up. Morehead admits the 2017 rally was surrounded by "media frenzy" with all kinds of new tokens "that really did not have any basis to exist."
This time things are different as the rally is driven by public companies like Square, PayPal and MicroStrategy, Pantera Capital's CEO added.
As of press time, bitcoin is trading at $23 518 (+0.65% over the last 24 hours).
In May 2020, the California-based hedge fund said in an email newsletter that each subsequent halving’s impact on bitcoin's price will likely taper off in importance as the ratio of reduction in supply from previous halvings to the next decreases. In 2020, the reduction in supply is only 40% as great as in 2016. If the relationship holds, that would imply approximately 40% as much price impulse and the price of bitcoin could peak at the $115 212 mark, Morehead wrote in the newsletter.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.