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- Pantera’s CEO remarked that Bitcoin (BTC) is a serial killer that correlates with traditional risk assets only when the world is freaking out.
- Bitcoin will bring the Internet to finance.
- Morehead believes that the crypto markets will explode in real-time in the nearing months.
- Due to the COVID-19-related shutdowns, the funds that temporarily took the risk down are now back at full limit long on crypto assets, says Morehead
Dan Morehead, the CEO, and co-founder of investment firm Pantera Capital remarked that Bitcoin (BTC) is a serial killer that correlates with traditional risk assets only when the world is freaking out. He further added that the crypto markets are expected to face a higher explosion.
This cropped up as he spoke on What Bitcoin Did on April 10, 2020. Dan Morehead is one of the well-known investors in the crypto world.
He further revealed his overall perspective of bitcoin as new technology and a disruptor of old organizations. Concerning the same, he referred it to a serial killer that can cause disruption of various industries.
What is the reason Bitcoin will disrupt other industries?
He reasoned out as to why he thinks it will disrupt dozens of industries. He said that although Bitcoin is a digital gold as few people call it, one has to keep a record of other assets on a blockchain. Numerous things could be done with bitcoin and its technology, blockchain.
He also acclaimed that bitcoin will bring the Internet to finance. He believes that the internet has changed everything excluding finance.
Morehead restated about his earlier forecast made in a conference call on April 7 with investors. According to which he believes that the crypto companies will face an explosion in real-time about a few months from now. The months varying from 3 to 9. He elucidated that once the focus of investors shifts from the initial market panic, they will begin to focus on new opportunities in the coming months.
The CEO sounded optimistic as he said that bitcoin is more probable to hit a record price within a time of 12 months, and can also be way higher than that.
Pantera’s current investment strategy
Because of the apparent COVID-19 related lockdowns, the funds that temporarily took the risk down are now full limit extended on crypto assets, said Morehead. The statement ensued while he spoke about the company’s current investment strategy.
Morehead’s perspective on bitcoin’s correlation
BTC in correlation with the S&P 500 during panics is just temporary as stated by him. Conversely he also stated that bitcoin has very low correlation over a long time, correlating only when the world freaks out.”
There existed five big downdrafts in the S&P 500 since bitcoin was liquid to trade. In each of those, bitcoin undeniably became positively correlated with the S&P, and also dropped with the S&P. Nonetheless, that correlation breaks down after 2 months and goes back to a zero correlation, according to Morehead.
Pantera had managed USD 540 million in the capital as of January 31 in seven funds in three product groups. The product groups are passive, hedge, and venture. Their funds are open to authorized investors who seek to invest a minimum of USD 100,000. The company is reported to have invested in crypto startups.
