Hey ninja’s, how’s the trading going? Dan Morehead, CEO, and founder of San Francisco-based blockchain and cryptocurrency hedge fund Pantera Capital predicted that bitcoin will “come of age” during 2020’s financial crisis and may set a new all-time high record within 12 months. His opinion was noted in a letter addressed to investors examining the effects of the COVID-19 virus on the financial market.
Dan Morehead gave a rather bleak prediction regarding the present financial crisis in the United States, explaining that the present crisis is “like no other” and it will certainly put an end to the largest global expansion on record. He also added that the recent downturn in the economy due to COVID-19 will likely have the largest economic impact than any previously recorded downturns.
He noted that he believed that the recent correlation between cryptocurrencies and general markets is over and cryptocurrencies will now trade independently. Expatiating on the time required for its recovery, noting that bitcoin will recover in stages before possibly setting a new record.
According to Morehead, the first will take institutional investors 2-3 months to decide the best method to remedy their “current portfolio issues”. This stage will then be followed by 3-6 months of research for new opportunities, after these stages, he believes the market will then begin to rise.