Hedge Fund CEO Dan Morehead says now is the time to buy Bitcoin
Dan Morehead, Hedge fund CEO, and founder, of Pantera Capital Management, says now is the time to buy Bitcoin.
Mr. Morehead said Bitcoin had reached its bottom this year, making it a perfect time to invest.
Speaking to CNBC, the hedge fund CEO says that current dip in the market is creating a great investment opportunity saying:
“All cryptocurrencies are very cheap right now.”
Morehead, who is also the co-chief investment officer of Pantera, says that cryptocurrencies are currently undervalued.
On the whole, cryptocurrencies have fallen by around 65 percent from prices highs this year, he said.
Get ahead of the rally
Speaking on Thursday’s “Fast Money” on CNBC, the Pantera hedge fund CEO explains:
“It’s much cheaper to buy now and participate in the rally as it goes.”
In early February, however, it’s price dipped to only to $6,000.
At the time of press, Bitcoin is currently priced at $7450, according to the live price charts.
Volatility in the market has left many market observers on edge.
The ever-looming regulatory fears also hold prices market, with cryptocurrency remaining a largely unregulated industry.
According to hedge fund CEO Morehead, coming regulation may work in investors’ favor, however.
“Many institutions are essentially buying the rumor [of possible SEC regulations] and selling the fact,” Mr. Morehead explains.
“Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we’re hearing about come online, they’ll already have their positions.”
The leading crypto investor also has a tip for those wanting to make a profit on cryptocurrencies.
He says investors should buy a cryptocurrency once it breaks its 230-day moving average, then wait a year and sell, saying:
“Without even thinking about it, you make an average of 239 percent.”
He says that Bitcoin best illustrates the reasoning behind his strategy because it “happened about five times in the last six years,” adding:
“That’s the essence of this trade: It rarely ever gets cheap to its long-term average.
“So today is a good day to be buying.”
Morehead founded Pantera Capital Management in 2013, and it is one of the first Bitcoin firms in the US.