Bitcoin should takings to peak levels in the next couple of weeks and will continue reach ones majority from there, said digital currency investor Dan Morehead.
“There’s such an institutional enthusiasm to get exposure to this,” said Morehead, who is founder and CEO of Pantera Capital, a hedge hard cash and investment firm that works exclusively in cryptocurrency and blockchain technology. “It’s a half-a-trillion-dollar asset stock that nobody owns. That’s a pretty wild circumstance.”
“And bitcoin is quiescent so underowned by institutional investors that it trades at its own beat,” he told CNBC’s “Fixedly Money” on Thursday.
Pantera Capital was founded in 2003 and started its before cryptocurrency fund in 2013. It has since had returns of more than 22,000 percent, agreeing to the Hedge Fund Research Indexes. In 2017, the firm launched an ICO, or monogram coin offering, fund and a digital asset fund, receiving replaces of 549 percent and 188 percent, respectively.
When bitcoin peaked in mid-December, job around $19,500, the cryptofund was up 2,922 percent and collected more than $2 billion in assets second to management. The firm was so successful that it had to raise fees to reduce inflows.
“We’re certainly wise it’s a very speculative market,” said Morehead, who first bought bitcoin for $72 and examined the digital coins fall below $6,000 in January. “It’s volatile on the upside. It can be vaporizing on the downside.” In December, he predicted the coins would fall by 50 percent rather than the next big surge.
Crypto prices slowly began to creep disregard up this week, trading above $8,000 on Thursday. Morehead said bitcoin’s breech may be here.
Bear markets, on average, have a 71-day run, Morehead unmistakeable out. “And we’re 52 days into this,” said the former hedge-fund strategist who started his career at Goldman Sachs as a mortgage-backed security trader. “It seems get a kick out of another couple of weeks and everything will be normal and [bitcoin] can start developing back up again.”
While his firm trades bitcoin, ethereum and riffle — “all the big ones” — he said the ones to watch are the new protocol representatives or ICO with small-caps.