Dan Morehead, founder, and CEO of Pantera Capital Management, a cryptocurrency fund enterprise, declared yesterday that if you invest wisely now in bitcoin, you could make more than the double of the amount invested in a year. He stated this while being declaring about institutions investing in crypto, on CNBC’s Fast Money yesterday.
Dan Morehead is the head of Pantera Capital Management, a capital investment enterprise that made a lot of money by investing in bitcoin and other cryptocurrencies in its early stages and profited heavily with bitcoin’s price hike in December. Before this, he managed an electronic foreign exchange firm called Atriax.
Dan claims that his firm has studied the current stance of the market, and he states that cryptocurrencies are way underpriced and that buying now it is a good move for profiting later. He said that by buying bitcoin now when the currency breaks its 200 days average price, could make you win an average of 239% selling it in a year. This has happened more than five times over the last six years; about this, he stated:
“That’s the essence of this trade: It rarely ever gets cheap to its long-term average. So today is a good day to be buying.”
The cryptocurrency market has experienced a rebound from the last week drop, but prices are far from the levels that investors predicted for the second quarter of the year. He also stated that cryptocurrency adoption at an institutional level is not a switch; it’s a process that has been happening since long ago with limited successes.
Cryptocurrency funds have dropped revenues since last year, but institutions are still positive and joining the market by buying cryptocurrencies and slowly but surely adopting cryptocurrencies as a payment method. By doing this, they will be ready for probably coming regulations from institutions like the SEC (Security and Exchanges Commission) and the CFTC (Commodity Futures Trading Commission), and just will have to adapt to them.