CEO of investment firm Pantera Capital, Dan Morehead, is confident that market participants should not be worried about the current “cryptozymes,” according to CCN.
According to him, similar bear markets have happened before. There are also positive sides to the recession - Morehead is convinced that the current situation opens up good prospects for the future development of the bitcoin and blockchain industry.
“In fact, this is already the second cryptozyme,” said Pantera Capital’s head of a conversation with the Unconfirmed leading podcast Laura Shin. - The previous such period was in 2014-2015. At that time I was more worried about whether the blockchain would work at all. At the same time there were serious regulatory risks. At present, the fundamentals are much stronger than those that were in the 2014-2015 cryptozyme. ”
Morehead also noted that his company prefers long-term investment decisions for the future 5-10 years. According to him, these strategies are not afraid of intraday price fluctuations.
The head of Pantera Capital is confident that institutional investors will eventually come to this market en masse. However, he notes, the downturn in the market is the main reason that the major players so far prefer to “hold their horses.
“People have been talking for years about the looming wave of institutional money. I think that the necessary conditions for this are already on the crypto-market now, ”Morehead continues. “Institutionalists need a proven and regulated custodian, which we did not have in the past.”
As examples of regulated platforms for large players, the investor called Fidelity and Bakkt, which are preparing to launch.
Morehead stressed that institutional solutions approach investment decisions with caution. This means that they will not be included in long positions, without waiting for confirmation of price growth. That is, the big players take a slightly different approach than just “buy cheaper, sell more”. In general, the head of Pantera Capital believes, the “whales” have a herd mentality.
“We launched the fund when Bitcoin was at $ 65. Very few investors entered only when the price rose in the range of $ 400-500. And then, when the price rose to $ 1,000 in 2013, we got a huge influx. And when in 2014-2015 came “cryptozyme” investor interest dried up ”
According to Morehead, this example explains why the institutional institutions are still not in a hurry to enter the market.
Finally, he expressed the opinion that over the next 6-9 months, the US Securities and Exchange Commission (SEC) will decide on which assets to belong to the category of securities. This will bring considerable legal clarity.