Dan Morehead, current CEO of Pantera Capital, had some chosen words about Bitcoin that he shared in a recent interview with CNBC. Speaking on the topic of this cryptocurrency, Morehead expressed belief that the current market is the perfect opportunity to invest in Bitcoin.
And Mr. Morehead isn’t wrong in his calls. Bitcoin price has indeed fallen off quite a bit from its January highs of nearly 20 thousand dollars and is currently sitting at around $7,500. The period behind us has seemingly shaken off plenty of weak hands and bad holders and has allowed some institutional, smart money to move in. Still, Morehead feels that institutions haven’t yet taken a strong grasp on Bitcoin, saying:
He seemingly thinks that now is the time to invest, before all the talk about the SEC regulations clears out and drives institutional money in. His tip for an average investor is to act with a long-term mindset, claiming that you should buy a currency once it breaks its 230-day moving average, wait for a year and then sell your bag.
Morehead suggests that this strategy can be best applied to Bitcoin, as he noticed a similar pattern happen five times in the last six years of Bitcoin’s existence.
Morehead’s words do ring bullish, if not true. As an investor, one needs to consider the fact that Pantera Capital is an investment firm (one that specializes in crypto) and that Dan Morehead has “skin in the game”. While Bitcoin has indeed fallen off since its original heights, that has happened due to various different reasons. Weak and bad money flooding the market in late 2017, Mt. Gox coins selloff, SEC and Chinese clampdowns have all had strong effects on the Bitcoin’s price and expecting a reversal out of the blue is probably not too smart. We have experienced why just recently with the expected “post-Consensus pump” which never happened.
A person playing the devil’s advocate could suggest that Morehead is just looking to dump his Bitcoin bags on people during this fake bullish momentum and then buy in more later when the price drops even further. This thought should be entertained, if anything because many experts saw us going down to 5000s just a couple of days before the latest upwards movement. Some reddit users seem to feel the same way, with user Ploxxx69 commenting on why Moreland suggested people should buy now by saying:
“Uhu, probably because he is invested (in) it…”
SoulFede expands on this by saying:
“Do it, he needs liquidity to dump on y…I mean, he cares about you!”
No one can tell the actual motives behind Mr. Morehead’s words. What we can tell you with certainty is that one will never be able to completely predict the exact bottom before the next bull-run. If we look at the current price of Bitcoin we can see that it’s hovering around $7,500, which is way lower than what it was at its all-time high. Most experts do agree that Bitcoin is undervalued right now and agree that we could reach $20,000 if not even more by the end of 2018. Judging by that, entering Bitcoin right now might not turn out to be the worst financial move you’ve made in your life.
