Dan Morehead, the head of a large cryptocurrency hedge fund Pantera Capital, who is one of the first investors in BTC-USD, said that now, the cryptocurrency market is considered grossly undervalued.
In 2013, Morehead founded a crypto fund. This year, the value of the fund’s assets has reached $2.8 billion, which includes investments, both venture capital and tokens.
Recently, in an interview with Yahoo Finance Live, Dan Morehead stated that it is estimated that in about 10 years, Bitcoin will be worth $700,000. This will happen when everyone who uses a smartphone will have BTC. Over the past two years, the number of people who want to buy cryptocurrency increased by an order of magnitude.
It is noteworthy that Pantera, which currently has about $1 billion in assets under its management, holds 10% of them in Bitcoin.
It should be noted that now, the price of BTC is very different from forecasts.
Recall that earlier, Morehead advised to take advantage of the panic in the market and buy BTC since the price for it fell.
Many significant factors influenced the fall in the exchange rate. The main ban on mining in China is considered. However, the head of Pantera Capital counted that this is already the eighth ban against the cryptocurrency market in the Middle Kingdom. In his opinion, besides the ban in China, there are two more factors.
The fall in the exchange rate was influenced by the time of payment of taxes in the United States. During this period, many traders stopped purchasing digital money.
Another not unimportant factor in the currency sinking and price fluctuations is the statements of large businessmen and investors, such as Elon Musk, one tweet of whom can both raise and lower the value of all virtual coins.
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In April of this year, BTC peaked at $63,000, followed by a precipitous decline to $29,000. The Bitcoin price is already $39,000 this month. This is attributed to the fact that institutional investors are entering the market again, and large companies are allowed to make purchases by paying with BTC.
During that period, prices fell not only for Bitcoin but for all cryptocurrencies. Ethereum and Dogecoin suffered significantly, the cost of which also halved.
Both small traders and companies operating in this space have suffered from the sharp drop in cryptocurrencies.
Coinbase is down 20% from its NASDAQ debut at $328.88. The shares of the first two cryptocurrency followers on their platforms PayPal and Square have surged but by just 3% and 0.1% over the past three months. Previously, this figure was 5%.
Despite the recent drops, Morehead remains optimistic about the gains in the cryptocurrency price. He announced that his company is launching a fund that aims to invest in a full range of assets. In addition, the macroeconomic situation, in his words, is positive, because a lot of money is printed, and many institutions appear. This gives hope that the markets will resume their rally in the next two years.