Pantera Capital Management is predicting that the price of Bitcoin could eclipse $700,000 in 2028, shortly after the asset sailed toward a six-figure valuation per token last week. 

Pantera Capital CEO Dan Morehead said Tuesday in a letter to investors that Bitcoin could hit $740,000 by April 2028, based on historical trends, due to the election of pro-crypto President-Elect Donald Trump and a majority digital asset-friendly U.S. Congress.

And with just 5% of financial wealth invested in blockchain-related assets, Morehead believes that Bitcoin's price has a lot of room to grow.

“Even after 11 years, Bitcoin is still squeezing up like a watermelon seed,” Morehead wrote. “Blockchain’s 15-year regulatory headwinds are now turning into tailwinds.”

The executive's bullish prediction comes amid good news for the hedge fund: Pantera Capital's Bitcoin Fund, launched in July 2013, is reaping returns of more than 131,000% over the last 11 years, excluding expenses and fees.

Those massive returns are due to the value of the hedge fund’s Bitcoin increasing by more than 1,000-fold since it first bought the asset at $74 per token more than a decade ago.

The world's oldest digital currency is trading for about $96,300 as of writing time, CoinGecko data shows.

Despite Bitcoin's astronomical growth, Morehead believes that it is “still early” for the leading cryptocurrency, and that there’s still plenty of room to run.

“I can imagine an investor thinking: ‘Bitcoin has doubled this year. Well, I guess I missed it,’” Morehead said in the letter. “That's the wrong mindset.”

Edited by Andrew Hayward