Pantera Capital CEO Dan Morehead Claims “Bitcoin’s Fundamentals are Stronger than Ever”


As many of our readers probably already know, at the start of 2018, the total market capitalization of the crypto industry was estimated to be a whopping sum of USD $800 billion. However, since then, the industry has fallen victim to extreme bearish conditions — causing the market to fall by over 80 percent to its current valuation of $135 billion.

What Does Dan Morehead Have To Say About The Future of Bitcoin?

Recently, the analytics team over at Pantera Capital, a San Francisco-based blockchain investment fund, released a study comparing the price of Bitcoin in 2013 to its rates all through 2017. All of this was done using data that was collected in real-time during the aforementioned time period.

As per the report, despite a decline in the price of the flagship asset, the fundamentals of the currency remains

“stronger than ever”

From a historical perspective, we can see that back in 2013, Bitcoin scaled up to an amazing price point of USD $1K— following which it then dropped to around $300 within a period of 12 months.

On the subject, Morehead was quoted as saying that the 2014 crypto winter was “more of worry” to him than the one that has been around since the start of last year.

“Today, the underlying fundamentals are much, much stronger than they were in the 2014–15 crypto winter.”

Why This Optimism?

Morehead’s optimism stems from the fact that despite the price of Bitcoin dropping by nearly 80% over the past year or so, the fundamentals of the currency are still going strong. Additionally, he is also of the opinion that the entry of trading platform Bakkt (an entity that is backed by NYSE and ICE), as well as the launch of Fidelity’s crypto-custody solution, will help spur the growth of this market.

“People have been talking for years about the impending institutional wave of money coming into the markets and I think we now actually have the required conditions for that to happen.”

He then went on to add:

“I think that’s been the gating factor: that large institutions want a more institutional custodian like Bakkt or Fidelity. And once those come in, people will start buying and that’ll start the price moving up. But the massive amount of investment probably won’t occur until the prices have already really gotten going.”

Other Key Points Worth Remembering

According to Morehead’s estimates, it will still take the market a few more years to realize the true impact of the industry’s recent scaling efforts.

In his opinion, the crypto market will remain a regular fixture on the global economic stage for years to come.

On the issue of scalability, the CEO of Pantera went on record to state:

“These protocols will scale. Even if it takes years for it to happen, you shouldn’t discount that eventuality out of the price today.”

Final Take

In closing out this piece, it should be mentioned that Pantera Capital was recently able to secure around USD $125 million for its third venture fund. It now remains to be seen what the future has in store for the firm as well as for the crypto industry at large.

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