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June 28, 2022
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Pantera Capital CEO Dan Morehead explains how Bitcoin’s user base affects its price

In his traditional monthly letter to investors, Mr. Morehead talked about the number of people using Bitcoin (BTC) and how it affects their price.

California-based Pantera Capital is one of the first venture capital giants focused exclusively on digital assets. Launched in 2013, it invests in companies valued between valued between $ 500 million and $ 1 billion. Its CEO, Dan Morehead, spoke about the correlation between the adoption of Bitcoin (BTC) and its price.

Bitcoin vs. user base

Mr. Morehead showed the correlation between two sets of data: namely, between the number of people using Bitcoin (BTC) and their market price. In his opinion, the relationship seems “constant” since the birth of BTC.

Thus, for every million newbies in Bitcoin (BTC), the first cryptocurrency rating increases by $ 200. This rule worked for 10 years, except in times of downward correction before the 2017 bullish run.

Therefore, Bitcoin (BTC) is the only conventional asset that demonstrates an annual growth rate of 213% for more than ten consecutive years.

Morehead would not be surprised if Bitcoin (BTC) reached six digits in 2022:

“It would just be a normal trend growth.”

Beyond Bitcoin (BTC) and Ethereum (ETH): unparalleled altseason

In addition, he recalled that he predicted the $ 62,968 Bitcoin (BTC) price in his April 2020 letter to investors. This prediction proved to be true.

He then admitted the unparalleled prospects for cryptocurrencies outside of Bitcoin (BTC) and Ethereum (ETH). According to their infographics, the share of altcoins (without Ethereum) has more than doubled since January, growing from 16 to 34 percent. Morehead sees no signs of a slowdown in this trend.

In 2021, his company offered three full investment products focused on cryptocurrencies; namely Liquid Token Fund (10-15 large caps), Early-Stage Token Fund (promising early stage products) and Bitcoin Fund, designed to provide investors with exposure to the Bitcoin (BTC) market, eliminating the need to buy coins directly.

Source: U.Today

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