Head of Largest Crypto Hedge Fund Expects New Crypto Market Rally

The head of Pantera Capital, Dan Morehead believes that prices of crypto assets are going up in a year as they will diverge from traditional assets such as stocks, bonds and real estate.

Speaking with CNBC discussing whether the U.S. Federal Reserve is running a Ponzi scheme, the CEO of the American hedge fund, specialized in cryptocurrencies, explained that interest rates are going to push traditional assets down. He said:

“One of our central views is that although obviously, interest rates have to impact bonds mathematically and they almost have to impact stocks and then other things like real estate will certainly be targets of the Feds [Federal Reserve Bank], there are some asset classes like cryptocurrencies that should be uncorrelated or disconnected from the interest rate markets.

Although it hasn’t happened yet, crypto has been very correlated with risk assets, I can easily see a world, in say a year when stocks and bonds are down, real estate is down but crypto is rallying and trading on its own. Very much like gold does. Or soft commodities like corn, and soybeans. All doing very well. So that’s the world that I think we will see.”

Despite the latest market sell off where crypto lost half of its market cap in just a few months’ time, Morehead remains optimistic and stressed that the fundamentals of crypto assets are remain attractive for investors:

“The fundamentals in crypto are still very positive. Obviously, we had a huge bull market, now a huge bear market. But I have been through five of those so far and for ten years we have been investing in crypto. So it’s not unprecedented, we’ve seen it a lot.”

Pantera Capital, the largest crypto asset management firm founded in 2013 when Bitcoin was still trading at $65 per coin, currently has more than $5.1 assets under management.