Dan Morehead, CEO of Pantera Capital, a hedge fund focused on digital currencies, told CNBC that Bitcoin could fall 50% before reaching new highs. Morehead bought Bitcoins for $ 72.
While the statement seems bearish, Morehead actually targeted investors in cryptocurrencies towards a long-term view. He said:
"Bitcoin could be 50 percent down next week ... where it was a month ago, but in a year, it will be much higher than it is today."
The statement reflects Morehead's belief that the cryptocurrency asset class is just beginning to develop and will continue to grow. He made his opinions clear and said:
"For the big Blockchains like Bitcoin, Ethereum and Ripple, we are in the first entries of a long-term thing. And there will be some ups and downs, but we're still very early. "
The digital currency hedge fund of Pantera Capital, founded in 2013, has increased by 60% only in the last two months, and more than 12,000% since its inception.