Pantera Capital represents one of the biggest cryptocurrency hedge funds in the world. Standing at nearly $1 billion in value, it’s been riding an unstoppable wave of success in recent years. The man at the helm of this dominant hedge fund is Dan Morehead, who has recently said in CNBC interview that now is the perfect time to buy Bitcoin and other leading cryptos.
Grab BTC While It’s Cheap
While many analysts appear to be cooling on the crypto market, Morehead is standing firm. He believes that there is real opportunity to be found amidst the falling prices. Labeling the crypto market as “very cheap”, he’s said that with the cryptocurrency market “down 65 percent from their highs, it’s much cheaper to buy now and participate in the rally as it goes.”
Partnering Morehead’s rallying cry to buy, he also offered up some words of wisdom for anybody that wants to profit from Bitcoin and other popular cryptos. “When a [cryptocurrency] breaks through its 200-day moving average, if you buy that day and sell a year later, you make an average of 239 percent without even thinking about it,” he said. While it’s a simplistic way of looking at the market, the statistics tend to back up this investment approach.
The Institutional Investor Argument
Bitcoin seems to be Morehead’s main focus right now, as he believes that the market-leading cryptocurrency is a can’t miss commodity. Having proved itself “five times in the last six years,” the belief is that it’s standing on the cusp of something spectacular, even if its value is experiencing something of a downturn. The next step for Bitcoin in the eyes of Morehead is institutional investment, which echoes the views of Spencer Bogart, Jamie Burke, and Ofir Beigel among others. Marking it as a much-needed catalyst for Bitcoin, Morehead said, “I think there’s an image out there that there’s an ‘on-off switch’, it’s ‘off’ now and [institutions] are going to flick it on some particular date. We’ve had institutional investors since 2013 and it’s a process. Risk and reward go together, but we’ve yet to have an SEC-regulated custodian, which is the silver bullet everyone’s waiting for.”
The big question is when will institutional investors make the jump, Morehead thinks that they’re slowly coming around to the crypto markets potential. “[Investors] are buying the rumor [of clarified SEC regulations] and selling the fact to others,” he said. Although, as a word of warning, he did advise that investors start getting ahead of the game when it comes looming regulations.
Pantera’s Growing Profits
Market losses for the crypto market reached 17.5% during April, but it appears that the cloud of doom and gloom is actually starting to lift. Standing as a true testament to how profitable the crypto market can be from a hedge fund perspective, Pantera Capital’s results shouldn’t be ignored. Since 2013, the fund has invested in 25 largely liquid blockchain-based currencies (including ETH, BTC, and XRP) and 35 pre-auction ICOs. The hedge fund’s performance has experienced overall gains from its Bitcoin-only fund of more than 25,000%, with it generating big profits as Bitcoin reached $20,000 in value at the end of 2017.
Morehead remains confident that Bitcoin has an extremely bullish future ahead, predicting that the overall cryptocurrency market cap could reach $40 trillion within a decade.