August 14, 2022

Dan Morehead: “During the year, cryptocurrencies will grow, unlike traditional assets”

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Dan Morehead: “During the year, cryptocurrencies will grow, unlike traditional assets”

Dan Morehead, CEO of hedge fund Pantera Capital, believes that soon the correlation of cryptocurrencies with traditional assets will decrease and digital assets will return to growth.

In an interview with CNBC, Dan Morehead (DanMorehead expressed the opinion that the increase in base rates will lead to the fall of traditional financial markets. But cryptocurrency rates may well show significant growth:

“Obviously, interest rates will affectbonds and stocks, and then other assets like real estate. There are some asset classes, such as cryptocurrencies, that should not be associated with traditional markets. So far, the correlation of cryptocurrencies with risky assets like stocks is very high, but I can easily imagine that within a year, stocks and bonds will fall, real estate will fall, but the cryptocurrency will rise strongly and will trade on its own rules. Just like gold or commodities like corn and soybeans. Everything is moving in that direction.”

Morehead noted that from a fundamental pointcryptocurrencies continue to look attractive to investors. He stressed that there was a significant growth of the market, and now there is an equally strong decline. But there have already been five such cycles and Pantera Capital has been investing in digital assets for a decade.

Earlier, Morehead said that in the short termIn the long term, the cryptocurrency market may continue to fall and the hedge fund may withdraw from bitcoin funds and invest in riskier altcoins. True, this will happen only when the market definitely reaches the bottom.