Pantera boss says it might be that right time you bought some Bitcoins. Given that the cryptocurrency has been growing fast, it is unlikely to drop below its 200-day moving average.
Bitcoin and cryptocurrencies have seen the worst since the start of the year so far. The cryptocurrency has lost 40 percent of its value this year compared to a 1,300 percent last year. The journey hasn’t been easy for traders and investors alike. But CEO of Pantera Capital Dan Morehead thinks that Bitcoin might be through those cycles now.
Morehead, who started the fund after moving from Goldman Sachs, told CNBC’s “Fast Money” that it is probably that time you should consider buying some Bitcoins given the cryptocurrency’s market trends. For instance, Bitcoin grew by 165 percent per year in five years ago. He says “something that grows that fast” will hardly get below its 200-day moving average.
It is already known that Bitcoin went as low as $6,620 in April nearing the bottom for the bear market, which was $6,500.
Pantera runs a Bitcoin Fund started in 2013, and last year they returned about 25,000 percent life as of December. It has so far returned 10,000 percent life to date. The fund has about $800 million in assets under management. However, its fund value dropped by nearly a half in March as cryptocurrencies’ prices went down.
The Digital Asset Fund went down by 45.7 percent in the same month, although it went down only 3.1 percent net of fees since December.
Last month, Pantera launched its third blockchain-focused venture fund that will focus on peer-to-peer transactions.
Wall Street strategist Tom Lee said earlier this month that Bitcoin could see a rally after Tax Day, which was April 17 and then could see $25K by end of this year.
Image Source: Dan Morehead