1 year ago
Dan Morehead, laminitis and managing spouse of Pantera Capital, a integer assets concern hedge fund, has predicted an upcoming bull marketplace for cryptocurrency. In Pantera’s latest letter, Morehead states that blockchain-related assets person started to decouple from marketplace indexes and that the clip is close for a caller crypto rally.
Pantera’s Founder Dan Morehead: Blockchain Assets Should Trade ‘Independently’
Dan Morehead, laminitis and managing spouse of Pantera, 1 of the archetypal cryptocurrency and integer assets-focused hedge funds, has predicted an upcoming bull marketplace for cryptocurrencies. Pantera’s latest blockchain missive titled “Bonds Down, Crypto Up” details the struggles that accepted marketplace investors mightiness look arsenic the U.S. Federal Reserve is incapable to support “manipulating” the bonds market.
Morehead explained:
With the Fed nary longer capable to manipulate the U.S. treasury and owe enslaved market, bonds are experiencing a Wile E. Coyote moment.
Furthermore, Morehead states that investors should beryllium wary of investing successful “interest-rate delicate plus classes.” This is wherever cryptocurrencies are poised to shine, arsenic Morehead believes blockchain assets “should beryllium capable to commercialized independently of rising rates,” evading the interaction of the coming announcement from the Fed.
Crypto Is Ready to Rally
Morehead’s investigation recovered that blockchain assets person decoupled from accepted markets, and person been arsenic specified for astir of their marketplace history. In Pantera’s letter, helium states the correlation of blockchain assets with the S&P500 scale implicit their archetypal 9 years of beingness was 0.03, labeling them arsenic the “dream investment” owed to their “incredibly precocious humanities returns and fundamentally nary correlation with emblematic assets.”
However, Pantera’s laminitis details this grade of correlation did turn precocious owed to events which person affected the cryptocurrency ecosystem since past year. Morehead explained:
All of the excessively-leveraged centralized entities and the alleged transgression Sam Bankman-Fried successful our abstraction caused the correlation to spike up, peaking astatine 0.76 past year.
Morehead states that blockchain assets should beryllium uncorrelated to stocks, bonds, and existent estate, arsenic they person nary transportation to involvement rates, pointing retired that the correlation betwixt bitcoin and the S&P500 has returned to beneath 0.1.
These elements marque Morehead foretell a emergence successful the blockchain plus marketplace arsenic helium believes capable clip has passed since the events that propped this correlation up.
Morehead concluded:
I’ve learned there’s conscionable truthful agelong markets tin beryllium down. Only truthful overmuch symptom investors tin take. It’s been a afloat twelvemonth since TerraLUNA/SBF/etc. It’s been capable time. We tin rally now.
What bash you deliberation astir Dan Morehead’s bull marketplace forecast? Tell america successful the comments conception below.
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