Founder and Director of the investment company Pantera Capital Dan Morehead (Dan Morehead), made a very optimistic statement about bitcoin and the cryptocurrency market as a whole.
Speaking in the Fast Money
CNBC, Morehead said that what is happening in the market event should not be considered catastrophic. According to history, the fall of bitcoin is not contrary to the completely normal scenario, and in addition, the financier expects in the near future changing trends in the market:
«We understand that this speculative market. It can differ volatility on the peaks and the lows. Loss 64% of the price relative to the peak is consistent with the average decline in the seven last bearish cycles. Not to say that past events determine what will happen in the future, however, in predicting a correction, these data do not fail. The duration of the correction is another indicator that is worth paying attention to. The bearish trend on the average remains on the market for 71 days. Now is the 52nd day. Have to wait a couple weeks and the market normalizes, and bitcoin starts to move up.»
Morehead also does not exclude that growth of the cryptocurrency market may resume at the end of this month, which can contribute to large investors, who had previously unable to tap into this segment:
«Institutional investors are showing huge interest in cryptocurrencies. In front of us «abandoned» the asset with a capitalization of half a trillion dollars. This is a very unusual situation, given that the correlation with other financial assets is just 0.1%. Such investors have not yet managed to fill their portfolios with bitcoins».
Also, head Pantera Capital shared his thoughts about regulation. The work of the U.S. government in this direction is commendable, that can assist market extra stimulation to growth:
«I believe that the United States does excellent work. Regulation is a good thing. According to the decision of the IRS, bitcoin is property to which to apply the principles of net long-term capital growth. The merits of the Commission on trade in commodity futures in this direction is also large. Now in markets there are futures on bitcoin,» — said Morehead.
The most attractive offers on the market, according to Morehead, the ICO are:
«In my opinion, the most interesting asset tokens on the new protocols implemented in the framework of the ICO in the first place — because of their small capitalization.»
In the company J. P. Morgan also full of optimism. On 8 February, the company released an internal report that called the cryptocurrency «innovation vortex» around the technology of the blockchain. The company’s specialists are confident that they are unlikely to disappear in the near future.
According to this document, optimistic mood giant in the financial world regarding cryptocurrency is not in doubt:
«Cryptocurrency is an innovative swirl around the technology of the blockchain, which is characterized as a high degree of volatility and constant testing of new digital products.»
This view of crypto-currencies is somewhat different from the public statements that J. P. Morgan has broadcast the last six months.
We all remember how in September of 2017 the company’s CEO James Dimon (James Dimon) called bitcoin a «Scam» than, according to analysts, has triggered price fluctuations in the market.
After that, Dimon said that «more is not going to talk about bitcoin», however, in January publicly acknowledged that his initial characterization was incorrect.