The CEO of Pantera Capital Management, Dan Morehead, said in an interview with Bloomberg Crypto yesterday that he sees Bitcoin as a screaming buy. This comes after Bitcoin’s fall in the last week from $9700 on April 25th to $8800 on 27th April.
Pantera Capital Management is an investment firm and hedge fund which exclusively focuses on ventures, tokens, projects related to blockchain technology, digital currency, and crypto assets. The company holds $1 billion in cryptocurrencies.
Dan states that Pantera uses machine learning and algorithms to look at the market of various cryptocurrencies, which includes transactional data, miner fees, sentiment data and ‘hype’.
According to Morehead, who is also the former CFO and Head of Macro Trading at Tiger Management, the drop of Bitcoin below its 200 day moving average signals a “screaming buy”. The company just issued its 3rd buy recommendation in 7 years.
“If you put a 100 bucks in each of the 4 times its touched its 200 day moving average, you’d have a 285% return.”
Morehead also stated that the blockchain was around an order of magnitude or two below what should be its “fundamental and fair value”. He also agreed that there was a possibility of Bitcoin being worth 10 or even 100 times of what it is currently worth.
He also said:
“The industry as a whole is at $400 billion, easily it could go to $4 trillion and $40 trillion is definitely possible. It’s a 10 year forecast, it’s definitely not going to happen overnight.”
When asked how long it would be until prices like those seen in December where Bitcoin was at $20000, Morehead said:
“I think that’ll happen in the next 12 months. The market’s already come back…and I think in the next 12 months it’ll have new highs.”
After saying that a “$400 billion assets would not be ignored for long”, he predicted that in the next 12 months, cryptocurrencies will have an SEC-regulated custodian who will emerge to “check the last box” in mainstream adoption of cryptocurrencies.
Twitter users responded to the predictions, with user Will Moriarty saying:
“2019 5 trillion 2020 70 Trillion”
User Wolf of Westchester says:
“Gentleman, you had my curiosity….now you have my attention.”
User Patrick Howard says:
“its happening!! Lets Go!”
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