According to Dan Morehead, now is the best time to buy Bitcoin. Speaking to CNBC, the founder of Pantera Capital said investors should take advantage of the relatively low prices of cryptos to make huge gains once the rally commences. Pantera Capital is one of the largest cryptocurrency hedge funds in the market. Dan Morehead serves as the CEO and co-chief investment officer of the fund.
Now is the Time to Buy Bitcoin
Cryptocurrency prices are down by an average of 65 percent in 2018. Thus, most coins are at their cheapest levels. Commenting on the market, Morehead said:
In our view, all cryptos are very cheap right now. [It’s] much cheaper to buy now and participate in the [price] rally as it goes.
Take Bitcoin for example, in mid-December, prices reached $19,600 but have since declined in 2018. BTC dipped below the $6,000 mark in February, the lowest since November 2017. Presently, the number one cryptocurrency is hovering around $7,500.
Morehead also had some tips for investors. According to him, there is a useful technical indicator to know the best time to buy Bitcoins.
When the currency breaks through its 200-day moving average, if you buy that day and sell a year later, you make an average of 239 percent.
According to the Pantera CEO, this particular indicator has revealed itself five times in the last six years for Bitcoin. Morehead also advised investors that cryptocurrencies rarely ever get cheap when compared to their long-term average price.
Today is a good day to be buying.
SEC Regulations are Imminent
Commenting on regulations, Morehead said that they were a good development for the market. In recent times, the emergence of institutional-grade custodial services for cryptocurrency has been identified as the next significant milestone for the market. He disagreed with the notion that the institutional investors were shying away from crypto due to the delays in the emergence of concrete regulatory framework. According to him, institutional investors have been in the market since 2013.
Many institutions are essentially buying the rumor [of clearly defined regulatons] and selling the fact. Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we hear about come online, they’ll already have their positions.
Augur and Ethereum Scaling Concerns
When asked about his favorite coin at the moment, Morehead identified Augur, the Ethereum-based prediction DApp scheduled to go live later in the Summer of 2018. Morehead expressed excitement at the potential benefits of having a functioning DApp running on top of the Ethereum blockchain, showing how useful such apps can be.
Responding to concerns over scaling, keeping in mind that Cryptokitties almost ground the network to a halt, Morehead said DApps like Augur would force a fast-tracking of the scaling process. According to the Pantera chief, blockchains like Bitcoin and Ethereum need to scale. He also said blockchains need to move from facilitating five to ten transactions per second to handling hundreds of thousands of transactions per second.
Do you agree with Morehead that now is the best time to buy Bitcoin? Keep the conversation going in the comment section below.
Images courtesy of CNBC and Blockchain.info.