Dan Morehead, the CEO of $1 billion cryptocurrency hedge fund Pantera Capital Management LP, spoke on Thursday with Bloomberg Television, pronouncing that Bitcoin “ is a screaming buy right now”.
During the interview, Morehead disclosed that Pantera currently holds around 10 percent of its investments in Bitcoin, but the funds most prominent bet is on Icon, a project that will allow different blockchains to communicate with one another.
He also anticipated that Bitcoin would recover from its losses this year, and even surpass the highest currency valuation of USD 20,000 that it held in December 2017.
As the number of digital currencies available in the market continues to increase alongside the number of new investors, Morehead believes the current USD 400 billion cryptocurrency market could increase to USD 40 trillion, saying this number is “definitely possible.”
“It’s the 10-year forecast,” Morehead added, however, saying “It’s not going to happen overnight.” One of the reasons behind his prediction is the increase of institutional investors into the market.
Morehead noted that while in the early days of cryptocurrencies mainstream investors would describe them as ”skanky”, attitudes have firmly evolved. In recent weeks, names linked to multinational financial institutions such as George Soros and the Rothschilds have been reported to have entered the cryptocurrency market.
While institutional investors currently account for around 10 percent of Pantera’s partnerships, Morehead predicts this will inevitably change within the next 18 months. He addressed the growing interest in digital currencies from Wall st. players, noting that this will influence many in the financial sector to begin investing.
“Anything that’s a USD 400 billion asset will not be ignored for long,” he said.
Over the past two years, hundreds of hedge funds have opened offering cryptocurrency investment services. The high volatility of the market has the ability to offer these clients enormous gains, while of course also relatively high-risk.