The CEO of blockchain and crypto hedge fund Pantera Capital says he believes Bitcoin (BTC) will likely shatter its all-time high of $20,000 in the next 12 months.
In a new letter to investors, Morehead says the current global economic crisis is unprecedented.
“I have spent 35 years trading global macro disruptions. This is like no other. This will certainly end the longest global expansion on record. It is likely to have a larger global economic impact than any downturn in recent memory.”
Morehead says he believes an economic fallout larger than any post-war recession is on the horizon. He cites data from Goldman Sachs and JP Morgan that shows “a real recession – negative global growth” is coming.
According to Morehead, the current macro environment is setting the stage for a Bitcoin and crypto rebound over the next year.
“Bitcoin was born in a financial crisis. It will come of age in this one…
Now that we’re in the trillions, the deficit just simply has to have a positive impact on the price of things not quantitatively-easable – stocks, real estate, cryptocurrency relative to the price of money. Said another way, the BTC/USD cross-currency rate will rise.”
Morehead says he’s expecting BTC to recover in stages, as investors with large amounts of capital explore new opportunities in the face exploding federal deficits in the US.
“The price of bitcoin may set a new record in the next twelve months. It’s not going to happen overnight. My best guess is that it will take institutional investors 2-3 months to triage their current portfolio issues. Another 3-6 months to research new opportunities like distressed debt, special situations, crypto, etc. Then, as they begin making allocations, those markets will really begin to rise.”
Although nothing is certain, Morehead says his team at Pantera is now positioning itself for a crypto surge.
“My only job is to manage your money in the cryptocurrency markets. I strongly believe that the policy set will ultimately be net positive for cryptocurrencies. That is how we are positioning.”
Morehead first began offering Bitcoin forecasts back in 2013 when it was $105, predicting BTC could explode to $5,000.
Pantera Capital is now one of the largest funds in the crypto space and has invested in dozens of crypto and blockchain companies including Bakkt, Ripple, Abra, Circle and ShapeShift.