Dan Morehead - Founder and CEO of Pantera Capital, has just predicted Bitcoin will "mature" during the financial crisis of 2020 and may reach an all-time high within 12 months.
The founder of San Francisco-based blockchain and cryptocurrency hedge fund made his comment in a letter to investors to consider the consequences of the COVID-19 financial crisis.
Morehead made a grim prediction for the economy and said he believed the global economy was about to enter its first "negative growth" period. "I now believe the economic downturn can be bigger than any other post-war recession," he said of the US economy.
“I have had 35 years of global macro trading. I have never met this situation before. This will surely end the longest global expansion in history. It could have a greater global economic impact than any recent memory decline. ”
Bitcoin will recover in stages
Morehead emphasized that Bitcoin has correlated with the downturn of stock markets and other markets. However, he said cryptocurrencies tend to be less correlated after the stock market falls for the first month or two.
"Right now we believe that a high short-term correlation with the public markets has ended and cryptocurrencies will trade independently."
He also likened Bitcoin to bonds, which tend to go up in times of market turmoil, and predicted that BTC would recover in stages before reaching a new all-time high:
“Bitcoin price could set a new record in the next 12 months. It will not happen in the short term. My best guess is that it will take 2-3 months for institutional investors to handle their current portfolio issues. From 3-6 months to study new opportunities like outstanding loans, special situations, cryptocurrencies, etc. Then, when they start allocating capital, those markets will actually start. growth."
The founder of Pantera Capital did not give a specific price, but he has previously stated that BTC has the potential to reach $ 365,000 within a few years.
Investors came to Pantera during a volatile market
As the first Bitcoin fund in the United States, Pantera quickly saw the potential of cryptocurrencies and raised $ 13 million in its first fundraising in 2013 and $ 25 million for the second.
While the CEO admits nothing is certain, he believes that the dark era will see money flow to a place of quality, and Bitcoin is in the best position to be the market leader in the market. 11 years.
“Bitcoin was born in a financial crisis. It will mature this time. ”
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According to CoinTelegraph
Translated by ToiYeuBitcoin