Bitcoin’s bear market got you feeling blue? Well, cheer up! Dan Morehead, the founder and CEO of Pantera Capital, thinks the best is yet to come.
The Bear Cycle Is Coming to an End
Dan Morehead, the founder and CEO of Pantera Capital, went on CNBC’s Fast Money earlier this week, where he made some seriously bullish statements about Bitcoin and the cryptocurrency market as a whole.
Despite Bitcoin’s recent and sharp correction, Morehead thinks everything is ultimately right on track. Using history as an indicator, he claims Bitcoin’s severe drop in price is actually totally normal. Additionally, he predicts Bitcoin will start rising in the next couple of weeks, explaining:
We’re certainly aware that it’s a very speculative market. It’s volatile on the upside, but it can be volatile on the downside. But we’ve had a 64 percent fall from its peak to the trough a couple of days ago and that’s actually exactly the average decline in the Bitcoin market over the last seven bear-market cycles. So—the past doesn’t predict the future—but it seems like this is about the right [correction]. The other stat to note is that it typically has had on average a 71 day bear market and we’re 52 days into this. So it seems like another couple of weeks and everything will be kind of normal and it could start grinding back up.
Aside from sharing his expectations that Bitcoin and the cryptocurrency market will start to climb by the end of February, Morehead additionally explained that institutional investors have barely even gotten involved in the market – leaving plenty of room for expansion. He explained:
There’s such an institutional appetite to get exposure to this. It’s a half a trillion dollar asset class that nobody owns. That’s a pretty wild circumstance. And it’s also only got a 0.1 percent correlation to the rest of the financial markets… And Bitcoin is still so under owned by institutional investors that it trades kind of at its own beat.
More institutional investors in the future correlate to significantly higher market caps, so claiming Bitcoin is “under-owned” should get long-term cryptocurrency investors excited.
Morehead also shared his thoughts on regulation. He believes the US has done a commendable job thus far and thinks more regulation will ultimately help the market grow at a healthy pace, explaining:Daily Deals Shop our amazing deals every day and get up to 60% off. Fast, reliable delivery .