- Dan Morehead has just this week predicted that the leading cryptocurrency will come of age during the 2020 financial crisis brought on by the coronavirus.
- In fact, Dan continues saying that it may just top its all-time high price within just one year.
The founder and CEO of Pantera Capital, Dan Morehead has just this week predicted that the leading cryptocurrency will come of age during the 2020 financial crisis brought on by the coronavirus. In fact, Dan continues saying that it may just top its all-time high price within just one year.
The CEO of the San Francisco-based company made his comments earlier this week on the 25th of March in a letter to investors analysing the backlash as a result of the financial crisis.
Morehead offered his pessimistic prediction for the future of the economy and said that he believes the international financial world is about to enter its first-ever period of negative growth. He made comments on the current state of things and compared them to the postwar recession. He further said:
“I have spent 35 years trading global macro disruptions. This is like no other. This will certainly end the longest global expansion on record. It is likely to have a larger global economic impact than any downturn in recent memory.”
Furthermore, the CEO highlighted that bitcoin has been correlated with the share market in this and other market downturns. He added that cryptocurrency tended to be less correlated after the first couple of months of the stock market price collapsing.
“We now believe that the short-term high correlation with general markets is over and that crypto will trade independently.”
He then commented on bitcoin to bonds, this tends to shine during times of uncertainty in the market. In crediting bitcoin will recover in stages before it reaches its new all-time high. He went on to say:
“The price of Bitcoin may set a new record in the next twelve months. It’s not going to happen overnight. My best guess is that it will take institutional investors 2-3 months to triage their current portfolio issues. Another 3-6 months to research new opportunities like distressed debt, special situations, crypto, etc. Then, as they begin making allocations, those markets will really begin to rise.”