Buy ‘Em While They’re Cheap, Says Hedge Fund CEO


Today’s cryptocurrency markets are “very cheap”, according to Dan Morehead, CEO of a $1 billion cryptocurrency hedge fund Pantera Capital.

During his interview with CNBC on June 1st, Morehead explained that the markets are “down 65 percent from their highs,”, so “it’s much cheaper to buy now and participate in the rally as it goes.”.

“When a [cryptocurrency] breaks through its 200-day moving average, if you buy that day and sell a year later, you make an average of 239 percent … without even thinking about it …

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.”

Institutional players

Regarding the large institutional players potentially entering the market and boosting the prices suddenly, Morehead explained:

“I think there’s an image out there that there’s an ‘on-off switch’: it’s ‘off’ now and [institutions] are going to flick it on some particular date…. We’ve had institutional investors since 2013 and it’s a process. Risk and reward go together… but we’ve yet to have an SEC-regulated custodian, which is the silver bullet everyone’s waiting for.”

According to Morehead, the institutions are already “buying the rumor [of clarified SEC regulations] and selling the fact.”.

Pantera Capital is around since 2013. It owns roughly 35 pre-auction ICOs and multiple blockchain currencies. The fund remains very bullish on the future of cryptocurrency.

Do you agree with Morehead regarding the institutional players cashing in on the SEC regulations? Share your thoughts in the comments below!


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