Dan Morehead, CEO of hedge fund Pantera Capital, believes that soon the correlation of cryptocurrencies with traditional assets will decrease and digital assets will return to growth.
In an interview on CNBC, Dan Morehead expressed the view that rising base rates would lead to a fall in traditional financial markets. But cryptocurrency rates may well show significant growth:
“Obviously, interest rates will affect bonds and stocks, and then other assets like real estate. There are some asset classes, such as cryptocurrencies, that should not be associated with traditional markets. So far, the correlation of cryptocurrencies with risky assets like stocks is very high, but I can easily imagine that within a year, stocks and bonds will fall, real estate will fall, but the cryptocurrency will rise strongly and will trade on its own rules. Just like gold or commodities like corn and soybeans. Everything is moving in that direction.”
Morehead noted that from a fundamental point of view, cryptocurrencies continue to look attractive to investors. He stressed that there was a significant growth of the market, and now there is an equally strong decline. But there have already been five such cycles and Pantera Capital has been investing in digital assets for a decade.
Earlier, Morehead said that in the short term, the cryptocurrency market could continue to fall and the hedge fund could exit bitcoin funds and invest in riskier altcoins. True, this will happen only when the market definitely reaches the bottom.