Bitcoin could reach $149K after the next halving according to Pantera Capital

Analysts at leading asset management firm, Pantera Capital believe that the price of bitcoin could reach $149,000, but not until the next halving, likely in 2025.

Pantera Capital: The next BTC halving is projected to occur on April 20, 2024. On average, the market peaks 1.3 years after. If history were to repeat itself, the next halving would see bitcoin rising to $36k before the halving and $149k after. https://t.co/VdAqkv3Jy2 pic.twitter.com/ezNdIKu1Fn

– Wu Blockchain (@WuBlockchain) November 23, 2022

The next halving is scheduled for April 20, 2024 and will see the mining reward halved from BTC 6.25 per block to BTC 3.125 per block.

Every four years, this “block award“is reduced by half, the so-called “division by two” or halving. This process repeats itself until 2140, when Bitcoin will reach its fixed stock of 21 million.

Analysts at Pantera Capital believe that if the demand for new bitcoins remains constant and the supply of new bitcoins is cut in half, it could drive the price up. In addition, there was an increase in demand for bitcoins prior to the halving due to the expectation of a price increase.

Based on precedent, Pantera notes that the typical formation of a bottom is one year and three months before halving and, on average, the market peaks 1.3 years later, implying a total of two and a half years to see the impact of halving.

According to Pantera, if history were to repeat itself, the price of bitcoin would bottom out probably on December 30, 2022, and a rally in early 2024 could occur, followed by a strong rally after the actual halving event.

Historically, bitcoin bottomed 477 days before the halving event, experienced a rally before the event, and thus made a recovery. If this is repeated, the next halving could see bitcoin reach $36,000 before the halving and $149,000 after.

Even higher predictions

Venture capitalist Tim Draper reiterated his prediction that the price of bitcoin would be able to reach the $250,000 level and even exceed it.

Draper has repeatedly predicted that BTC could reach $250,000 by the end of 2023.

Bitcoin is trading at $16,555, up a slight 5% after an earlier drop caused by FTX contagion fears.