Dan Morehead, a constitutor of Pantera Capital Management, says it is better to purchase bitcoin when it’s price is low. And right now is that moment.
Pantera Capital Management, by the way, is known to be among the most known investment companies which cyber-money. So there is no wonder that its founder has said something in favor of the “Big Daddy” BTC.
Dan Morehead told CNBC in “Fast Money” that this year bitcoin, perhaps, has reached its lowest rate. Therefore, it is a good time to pile into it. Morehead is not only a founder of Pantera Capital Management but also a top exec as well as a co-chief investment officer at this company.
In particular, he emphasized that all cyber-coins are not very expensive at the moment. According to his words, overall, digital coins have lost around 65% of their top values in 2018. The hedge fund's head also added that it is much cheaper to purchase bitcoin now and take part in the race as it evolves.
The first cyber-coin in the world went as high as to nearly $20,000 last year December, but just in a few months after that it lost a significant portion of its value, declining to $6,000 in February 2018. As of writing, bitcoin if being traded at the rate of $7,500, according to the data represented on Coinmarketcap.com.
Morehead Knows Better
At the moment, cryptos remain a hugely unregulated sphere. The primary concern of all regulators is their unstable nature, and it gives all watchdogs and regulators a headache. However, this can be a benefit for investors, in accordance with Morehead’s opinion.
"Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact. Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we're hearing about come online, they'll already have their positions," Morehead said.
Crypto-Investing Tip From Pantera Capital Management’s Founder
Morehead has advised investors, who are interested in virtual assets, to do the following thing. They should buy a coin after it breaks its 230-days moving average. After that, he said, a person should wait for a year and then vend a coin. "Without even thinking about it you make an average of 239 percent," said the shark of the investment.
He added that these tactics could be best demonstrated through the prism of BTC. That’s because this is a coin in which this happened around five times within the past six years.
He said this is the crucial part of this kind of trading.
“It rarely ever gets cheap to its long-term average. So today is a good day to be buying," concluded the trader.
As it is widely known, Pantera Capital Management was founded by Morehead five years ago. Currently, it is known as one of the first bitcoin-companies, headquartered in the US. The firm owns around 25 liquid blockchain coins, among which there are XRP, ETH, and BTC. Moreover, the company owns nearly 35 35 pre-auction ICOs.
Previously, Fundstrat’s head of research Thomas Lee forecasted that by the end of the current year the price of BTC would go up to $50,000 per unit. Nevertheless, later Lee announced another prediction – which seems much more realistic –, and it is the half of what had been forecasted before – $25,000 per BTC coin.
In the meantime, another bitcoin bull Tim Draper, who appears to be a billionaire and a serious BTC investor, believes that bitcoin will outperform itself, reaching the margin of $250,000 within the following four years.
If all this is true, then investors indeed should hurry up and fulfill Morehead’s pieces of advice: invest in BTC as it is cheap.