Feeling bullish over the latest Bitcoin price action? According to one cryptocurrency hedge fund manager, you should be.
‘It’s a Very Good Time to Buy’
Dan Morehead, CEO of San Francisco-based blockchain investment firm Pantera Capital, says the bottom is in for Bitcoin and the dark days of the bear market are likely in our rearview mirrors.
Morehead explained to CNBC‘s “Fast Money” that Bitcoin, the dominant cryptocurrency by market capitalization, has been growing at a rate of 165 percent per year over the five-year span his firm’s been doing business. He also shared one technical indicator that’s caught his eye:
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.
Morehead also cited a bit of common sense, claiming it doesn’t take a genius trader to spot a good deal. He explained:
It’s 65 percent below its high, you don’t get that opportunity very often.
In 2018 alone, Bitcoin is down roughly 40 percent — which some savvy investors might call the sale of the year.
Morehead has a long history of making bullish statements on Bitcoin.
In February, Pantera Capital’s CEO shared the knowledge that institutional investors have barely even gotten involved in the cryptocurrency market – leaving plenty of room for expansion. He explained:
There’s such an institutional appetite to get exposure to this. It’s a half a trillion dollar asset class that nobody owns. That’s a pretty wild circumstance. And it’s also only got a 0.1 percent correlation to the rest of the financial markets […] And Bitcoin is still so under-owned by institutional investors that it trades kind of at its own beat.
Dan Morehead also told clients in an April newsletter that he has “rarely had such strong conviction on timing” as he planned for a $20,000 Bitcoin price in 2018.
At the time of this writing, Bitcoin is trading at $8175 and is up more than 15 percent on the week, after absorbing one account’s dump of roughly $66 million and recovering back above $8000 in less than 24 hours.
Do you think the bottom is in for Bitcoin, or do you think there’s still room yet to fall? Let us know in the comments below!
Images courtesy of AdobeStock, Bitcoinist archives, and Pexels.
