And based on calculations, it could even hit $356,000 by 2021!

Dan Morehead, founder and CEO of crypto-focused hedge fund Pantera Capital, is not afraid to make mind-numbing projections for bitcoin. He’s set the bar this year at “Bitcoin $42000.”

But the crypto perma-bull has a basis.

Why bitcoin $42000 is possible

Speaking on a podcast, Morehead said the digital currency will likely scale new highs this year itself, even “Bitcoin $42000.”

His logic is the logarithmic trend of a 235% CAGR in the bitcoin price. Extrapolating current prices by that growth rate gives a price of $42,000 by the end of 2019.

“If you just extrapolate that (logarithmic) line out, for another year it’s $122,000 for BTC and in one more year $356,000,” he states.

You are welcome to take that prediction with a pinch of salt, but consider that when bitcoin plumbed bearish depths around $3,100 in December 2018, few would have expected it to more than triple in value to a high of $13,764 within six months.

Other factors beside logarithmic projects are important to consider. Recently, Greyscale founder Barry Silbert explained that GenX and Millennial investors are on the verge of inheriting $68 trillion from older generations.

Silbert argues that younger investors will shun traditional investments like gold and banks. Instead, he argues, they will pour capital into Bitcoin and other digital assets.