The CEO of investment firm Pantera Capital says the current value of the crypto market is currently a massive buying opportunity.
In a presentation at the TOKEN2049 crypto conference in Dubai, Dan Morehead says that digital assets like Bitcoin (BTC) will likely remain bullish amid pro-crypto regulatory changes under US President Donald Trump.
“If right before the US election a genie showed you a crystal ball and said that a pro-crypto candidate would win, the pro-crypto party would be in charge of the House and Senate, 54 anti-crypto people would be out of Congress, there’d be executive orders with Bitcoin strategic reserve, all kinds of things like this happening, and you said that the market would be only up 35%, they would say you were crazy.
So although people are kind of freaking out about the markets right now, I think it’s unbelievably cheap. The way I think about it is, our Bitcoin fund has a 13-year compound annual growth rate of 85%, so being up 35% over three or four months, it’s just kind of normal, like it’s not even up. So we’re still very, very bullish on the markets. Bunch of great policy things are happening.”
Morehead also says that traditional assets like stocks are likely overvalued and present a higher investment risk, whereas Bitcoin is likely to continue to outperform the S&P 500.
The investor notes that Bitcoin is up 50% in value compared to one year ago, while the SPX is up just 8% during the same time period.
“Stocks and bonds are super expensive to their long-term average, and that doesn’t even count weird things like tariffs and the impact of lower growth, higher inflation. So if you’re looking for a place to invest, the old school assets really do seem scary from an equity risk premium standpoint, either bond yields have to go up 75 basis points, or stocks have to come down quite a bit.
Blockchain is the safest place to hide, and you’re already seeing that. This is the change in the price of Bitcoin, gold and then the top 25 cryptocurrencies market cap weighted since a year ago (see chart below). It’s the only place to hide in an admittedly confusing world.”
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