Pantera Capital CEO gives an unusual Bitcoin forecast
- The CEO of a San Francisco-based crypto hedge fund, Dan Morehead, gave positive predictions about Bitcoin.
- He said that he expects BTC to surge and maybe reach a new ATH during the next 12 months.
- The state of the global economy is the worst in history, he said, believing that institutions will turn to BTC in several months.
Following the coronavirus’ rapid spreading around the world, the entire global economy saw a major meltdown. The stock price went down, and even the cryptocurrency sector soon followed. Now, many are predicting that Bitcoin price is likely to reach lows that it did not see in years.
Pantera Capital’s CEO, however, has a different view.
Dan Morehead commented on the state of the global economy
Copy link to sectionDan Morehead, the founder and CEO of Pantera Capital, recently commented on the state of the crypto industry. In his letter to investors, he stated that the current state of the global economy is extremely bad. Even worse, he believes that it is about to enter the worst period it had ever experienced.
“I now believe that the recession is likely to be larger than any post-War recession,” he said, adding “I have spent 35 years trading global macro disruptions. This is like no other. This will certainly end the longest global expansion on record.”
However, while his prediction for the state of the global economy is rather grim, he also made some positive remarks. In this time of crisis, he believes that the world will turn to Bitcoin. He admits that BTC has correlated with the share market, which caused the recent price drop. However, he also expects a major recovery in a month or two.
“We now believe that the short-term high correlation with general markets is over and that crypto will trade independently.”
Bitcoin will rise over the next 12 months, Morehead says
Copy link to sectionMorehead continued by saying that BTC price might even set a new record over the course of the next twelve months. He compared the coin to bonds, which often gain value when the stock market plunges.
Also, while he does expect BTC price to grow — and even reach new ATH — he says that it will happen gradually. Morehead expects that it will take 2-3 months for institutions to resolve their current portfolio issues. After that, they will research new opportunities for another 3-6 months. Once they start investing again, the prices will surely rise.
He did not try to predict the price, although he did say that BTC might reach $356,000 in a few years, on a previous occasion.
