The founder of cryptocurrency hedge fund Pantera Capital said on Thursday that he believes the cryptocurrency market cap could one day be worth $40 trillion.
Dan Morehead, who is also the firm’s CEO, said in an interview with Bloomberg that he believes the fair market value of the cryptocurrency market cap is an order of magnitude or two above where it currently sits.
“Obviously, we’re very bullish on the space. We think we’re way below, maybe an order of magnitude — or two — below the real fundamental fair value of blockchain,” he said, stating later that “the industry as a whole is $400 billion. It easily could go to $4 trillion, and $40 trillion is definitely possible.”
“Anything that’s a $400 billion asset will not be ignored for long,” he added.
For the cryptocurrency market cap to reach $40 trillion, it would need to increase approximately 10,000 percent from its current level. If current market share distribution held constant — which of course is unlikely — the Bitcoin price would trade at a nearly $1 million valuation.
As CCN reported, Pantera recently issued just its fourth trading recommendation on Bitcoin in its seven-year history, arguing that BTC had flashed a buy signal after dipping below its 200-day moving average. Since then, the Bitcoin price has climbed by approximately $2,000, netting investors who followed the firm’s advice a 29 percent profit.
Morehead doubled down on that recommendation during Thursday’s interview, stating that Bitcoin remained a “screaming buy” even after its moderate recovery.
Previously, Morehead said in mid-December that the Bitcoin price could decline by 50 percent or more heading into the new year, after which the flagship cryptocurrency entered a prolonged bear market out of which it has only recently begun to recover.
Notably, the publication reports that Pantera — which was founded in 2011 — currently has approximately $1 billion in assets under management. Of that, about 10 percent is in Bitcoin, though its largest stake in Icon, which ranks outside the top 20 on the market cap charts.