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Dan Morehead advises purchasing BTC during falling prices

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Morgan Creek Digital Co-Founder's Conflicting Views on Popular Bitcoin BTC Saying
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Bitcoin prices have become very volatile and have been continuously going down. But some people are cashing on this opportunity to purchase bitcoin. Dan Morehead, Chief Executive of Pantera Capital believes that this is the best time to buy bitcoin and also laid down the reasons for the fall in the prices of the token. 

We all know that Bitcoin prices have been going down and there is a certain section of people who are cashing on the discounted prices. Well, this is what Dan Morehead, Chief Executive of Pantera Capital believes. 

He is confident that the big crypto sell-off is slowing because he thinks people have witnessed most of this panic. 

Pantera Capital publishes a monthly newsletter, which talks about the trends in the crypto market. In the newsletter dated 14 June, the venture capital informed that the best time to purchase is when markets are well below trend. To back up his claim he showed a bitcoin trend deviation chart, which showed that the asset prices have slipped to this level for the fifth time in the bitcoin’s lifecycle.

He had tweeted his opinion on June 17, which was liked by 1.1k. 

Valuation of bitcoin

Bitcoin has been a very volatile token since its inception. The value has been changing rapidly over the period and Morehead believes that year-on-year returns do not indicate that bitcoin is overvalued either. He said that the value of bitcoin, year-on-year, did not go off the chart, unlike the past peaks. It is currently trading at 281% year-on-year which seems entirely plausible given the money printing that has occurred in that period.

News responsible for bitcoin fall

While explaining about the fall in the prices of bitcoin, Morehead explained that there are majorly three news stories that led to the fall in the prices of bitcoin. 

Firstly, the news of China banning bitcoin was another clampdown that led to the falling prices of Bitcoin. It was one of the big factors that led to this sharp fall. However, Morehead said that this has happened several times before. 

He listed several different incidents over as many years when China banned bitcoin or cracked down on the industry. However, the token revived and gained massively afterwards, which was shown in the chart. 

Beijing has also been banning bitcoin mining. It is due to the concern over energy consumption as the region strives for carbon neutrality. 

Secondly, the news of US Tax day, which has affected markets because the investors liquidate some of their holdings to raise money for their tax bills. Morehead explained that earlier tax day cycles have hit local lows a week before tax day. 

Thirdly, the onus for the fall in BTC prices goes to the tweets by Elon Musk. His tweet war on May 17 when he announced that Tesla may sell some of its BTC holdings because of the environmental concern over energy consumption. 

In May crypto assets decreased to 43% from their $2.5 trillion all-time high. It means that the market capitalization of bitcoin fell over a trillion dollars in the weeks that followed. Markets have been consolidating as they hit the lowest point in this pullback on May 24. The prices of bitcoin are currently around $1.6 million. 

Canadians investing in discounted prices 

It is well known that the prices of bitcoin are falling but this has become an opportunity for Canadians to purchase more bitcoins at the falling prices. There’s a heavy discount still seen in the bitcoin prices and the Canadians are cashing in on these discounted prices amidst the price correction. The demand for BTC is increasing among them further shows the positive sentiments in the market.

The Bitcoin ETF, which was launched in February has now collected 19,692.149 BTC till June 13 as per the data received by Bybt. The ETF has added 284.51 BTC in the past 7 days and approximately 2,000 BTC since May 15. 

Byzantine General, Technician believes that inflows into the ETF suggest that Canadians are not dubious about bitcoin’s short-term price correction. Hence, the bitcoin price action is a matter of concern for the bulls. Bitcoin has been showing slow signs and is below $40,000 for the past month. This price correction is witnessed due to the weakening sentiments, negative headlines and technical breakdowns. 

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