Pantera Capital Founder and CEO Dan Morehead has predicted Bitcoin will “come of age” during the 2020 financial crisis and may top its all time high price within 12 months.
The San Francisco-based blockchain and cryptocurrency hedge fund founder made the comments in a March 25 letter to investors examining the fallout from the COVID-19 financial crisis.
Morehead offered a grim prediction for the economy and said he believes the global economy is about to enter its first ever period of negative growth. “I now believe that the recession is likely to be larger than any post-War recession,” he said about the U.S. economy.
“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.”
Bitcoin will recover in stages
Morehead noted that Bitcoin has been correlated with the sharemarket in this and other market downturns. However, he said the cryptocurrency tended to be less correlated after the first month or two of stock market price falls.
“We now believe that the short-term high correlation with general…
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Author: Turner Wright