Dan Morehead, founder and CEO of crypto asset management firm, Pantera Capital, predicts Bitcoin (BTC) is closing in on a new rally upwards.
Speaking with Bloomberg, the CEO of the asset manager holding roughly $4.5 billion in assets under management, explained that Bitcoin is likely to have bottomed out in June and appeared bullish on the flagship cryptocurrency. He said:
“You know we’ve been doing this for 10 years and we’ve been through three big bear market cycles. On average, they lasted 220 days. That’s basically what we’ve just had.
I think we hit the lows in June. Let’s see. And then we’re on to a next bull market. It might be rocky and might take a while to get going. But I think that we’re on to the next leg of a rally.”
Finding an explanation for the somewhat disappointing past year for the top two cryptocurrencies, Bitcoin and Ethereum (ETH), Morehead pointed out that there are so many other crypto assets around to invest in, compared to the early days:
“Bitcoin is no longer everything. There was a time Bitcoin was 100% of the market and, for a while, Bitcoin and Ethereum were essentially everything.
Now there are many really important projects. And you’ve seen Bitcoin rally a bit but the real story is projects other than Bitcoin and Ethereum are rallying more.”
Although not coming up with exact price targets for Bitcoin for the end of 2022 and next five years, the Pantera Head said it is best to stick to the average annual growth rate of roughly 150%:
“Bitcoin as a proxy for the industry has averaged 2.5x a year in the past eleven years. Which is always kind of my standard forecast is that it will probably keep going at that same growth rate for a while.”