Hedge fund confirms cryptocurrency ‘dog days are over’
One of the world’s largest cryptocurrency hedge fund firms says Bitcoin’s price correction is over.
Pantera Capital Management predicts that investors should prepare themselves for monumental gains in the coming months.
The crypto investment firm that has more than $800 million in assets says $6,500 was the low of this bear market.
The hedge fund says that Bitcoin will now stay above that price for the majority of the next year.
According to a note sent to investors Thursday, values for Bitcoin will soon surpass the previous record of almost $20,000.
Pantera’s Dan Morehead and Joey Krug said in the statement:
“For those who are new to Pantera who might think a fund manager like Pantera would always be saying ‘Today’s a great day to get long.”
“I rarely have such strong conviction on timing.
“A wall of institutional money will drive the markets much higher.”
The hedge fund started investing in Bitcoin in 2014.
Since it’s launch, it has only made three buy and one sell recommendations in seven years, according to the note.
Bitcoin’s “Death Cross” recovery
The new call follows Bitcoin’s recent “Death Cross.”
The horrifying term refers to the cryptocurrency’s 50-day moving average crossing below the 200-day moving average.
It gets its name from the shape created when charting the activity plus its association with a downward market trend.
As scary as a Death Cross may sound, historically, a price recovery usually follows.
The rally that follows this scenario can often lead to record price highs.
According to the hedge fund report, the Death Cross can trigger a psychological response in traders:
“Traders often use that time period as it seems to be the optimal response time of human psychology.
“Long enough to stop fretting about missing the trade.
“Not too long that the information is lost.”