Dan Morehead, CEO of Pantera Capital, a hedge fund focused on digital currencies, has told CNBC that Bitcoin may drop 50% before pushing to new highs. Morehead purchased Bitcoin at $72.
While the statement appears bearish, Morehead was actually pointing investors in cryptocurrencies toward a long term vision. He said:
“[Bitcoin could be] down 50 percent next week ... where it was a month ago, but in a year, it'll be much higher than it is today.”
The statement is reflective of Morehead’s belief that the cryptocurrency asset class is just beginning development and will continue to grow. He made his opinions clear, saying:
"For the big Blockchains like Bitcoin, Ethereum and Ripple, we're in the first innings of a multidecade thing. And there's going to be some ups and there's going to be some downs, but we're still really early.”
Pantera Capital’s digital currency hedge fund, founded in 2013, is up 60% in the last two months alone, and up more than 12,000% since its creation.