Bitcoin Shows Low Purchase Potentiality says, CEO of Pantera Capital
The worst could be over for Bitcoin, as per one of the best known digital currency hedge fund managers.
Dan Morehead told CNBC’s Fast Money:
“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.”
Dan Morehead, whose firm returned 25,000 percent the year bitcoin hit its all-time high, stated $6,500 was the bottom of this bear market. The digital currency neared that level in April, dropping as low as $6,620, as per Coindelite. On Wednesday Bitcoin recovered close to $8,212 and had lost around 40% of its value this year.
Dan Morehead said:
“It’s 65% below its high; you don’t get that opportunity very often.”
As per Pantera’s most recent letter to investors, Bitcoin had a record year in 2017 with digital currency gaining more than 1,300% to around $20,000 in December. That helped Pantera, return approximately 25,000 percent life to date as of last December. It’s Bitcoin Fund is down by more than 50% this year yet has still returned more than 10,000 percent life to date.
According to an investor letter published earlier in April, the firm saw the value of its digital currency fund nearly in half in March.
In last month’s letter, Jon Morehead, who founded the company after a career at Goldman Sachs, told his investors would still make money if bitcoin bombs the way Pets.com did in the dot-com era.
Dan Morehead stated:
“If you had a portfolio of IPOs — one was Pets.com, and one was Amazon.com — it doesn’t matter what the rest were. You made a great return.”
Pantera, which has approximately $800 million in asset under management, likewise reported the launch of its third blockchain focused venture fund a month ago. The fund will focus on peer-to-peer transactions, fintech, machine learning, and artificial intelligence.