In an interview today on CNBC, Dan Morehead, CEO of crypto hedge-fund heavyweights Pantera Capital says investors need to take full advantage of cryptocurrencies such as Bitcoin and Ethereum now, while the market across the board is “very cheap.”
Dan Morehead is the CEO of cryptocurrency hedge fund and venture capital giants Pantera Capital, a company with over a billion dollars in assets. With a background in banking (Deutsche Bank, Goldman Sachs) followed by a decade involved in some of the biggest deals in crypto trading, Morehead knows a thing or two about digital currency markets.
Crypto Currently “Very Cheap”
In an interview earlier today (June 1) on CNBC, Morehead stated that today’s crypto markets are “very cheap” and now is the time serious investors should be buying. Morehead said that with various cryptos down by as much as 65% from their peak valuations, now is the time to spend some serious money:
“It’s much cheaper to buy now and participate in the rally as it goes. When a [cryptocurrency] breaks through its 200-day moving average, if you buy that day and sell a year later, you make an average of 239 percent … without even thinking about it… That’s the essence of this trade: it rarely ever gets cheap to its long-term average. So today is a good day to be buying.”
Morehead said that employing this strategy with Bitcoin – i.e. buying low and selling high – has proved very successful “about five times in the last six years.”
CNBC’s annalist suggested that institutional investment would be the next “big catalyst” for a major boost to crypto market, an opinion shared by many experts. Morehead, however, had a slightly different take on that theory:
“I think there’s an image out there that there’s an ‘on-off switch’: it’s ‘off’ now and [institutions] are going to flick it on some particular date…. We’ve had institutional investors since 2013 and it’s a process. Risk and reward go together… but we’ve yet to have an SEC-regulated custodian, which is the silver bullet everyone’s waiting for.”