Dan Morehead, the CEO of San Francisco-based Blockchain investment firm Pantera Capital stated that the bad days for Bitcoin are behind. He explained to CNBC’s “Fast Money” that Bitcoin has been growing at a rate of 165% per year over the five-year span his enterprise has been doing business, citing one technical indication that attracted his attention:
“Something that’s growing that fast hardly ever gets below its 200-day moving average. When it does, it’s a very good time to buy.”
Morehead also cited a bit of common sense, claiming it does not take a genius trader to spot a good deal. He explained:
“It’s 65 percent below its high; you don’t get that opportunity very often.”
In 2018, Bitcoin is down roughly 40%, which some savvy investors may call the sale of the year.
Nevertheless, Morehead is used to making bullish statements on Bitcoin. In February, he shared the knowledge that institutional investors have barely even gotten involved in the crypto market –leaving enough space for expansion. He elaborated:
“There’s such an institutional appetite to get exposure to this. It’s a half a trillion dollar asset class that nobody owns. That’s a pretty wild circumstance. And it’s also only got a 0.1 percent correlation to the rest of the financial markets […] And Bitcoin is still so under-owned by institutional investors that it trades kind of at its own beat.”
Dan Morehead also said to clients in an April newsletter that he has “rarely had such strong conviction on timing” as he planned for a $20,000 Bitcoin price in this year.
However, at press time, Bitcoin is trading at $8175 and is up more than 15% on the week, after absorbing one account’s dump of roughly $66 million, recovering back above $8000 in less than 24hours.