A stack of bitcoin tokens sit in this arranged photograph in London, U.K. (Photographer: Chris Ratcliffe/Bloomberg)

Crypto Hedge Fund Pantera Capital Says Bitcoin Has Bottomed Out

(Bloomberg) -- Bitcoin’s dog days are over, says one of the biggest cryptocurrency hedge funds.

Pantera Capital Management, which has more than $800 million in assets, says $6,500 was the low of this bear market and Bitcoin will stay above that price for the majority of the next year, likely surpassing the previous record of almost $20,000, according to a note sent to investors Thursday.

“For those who are new to Pantera who might think a fund manager like Pantera would always be saying ‘Today’s a great day to get long,”’ wrote Pantera’s Dan Morehead and Joey Krug. “I rarely have such strong conviction on timing. A wall of institutional money will drive the markets much higher.”

The fund, which started investing in Bitcoin in 2014, has only made three buy and one sell recommendations in seven years, the note said. The new call comes after Bitcoin crossed its 200-day moving average.

Crypto Hedge Fund Pantera Capital Says Bitcoin Has Bottomed Out

“Traders often use that time period as it seems to be the optimal response time of human psychology,” the report said. “Long enough to stop fretting about missing the trade. Not too long that the information is lost.”

©2018 Bloomberg L.P.