The founder of Pantera Capital Management has said that Bitcoin may have reached a bottom and that now is a good time to buy while its value is down.
Dan Morehead, CEO of the San Francisco-based company that focuses on cryptocurrencies and the blockchain, was speaking with CNBC’s ‘Fast Money‘ when he made his comments.
Also serving as co-investment officer of Pantera, Morehead said:
“All cryptocurrencies are very cheap right now. It’s much cheaper to buy now and participate in the rally as it goes.”
Bitcoin has certainly had an interesting first six months of the year. Mid-December prices for the digital currency were trading within touching distance of $20,000 for the first time. However, fast-forward to the beginning of June and it’s currently valued at $7,560, according to CoinMarketCap.
It’s not just Bitcoin, though, that is struggling to regain previous highs. The market as a whole has seen a drop in price, with market investors selling up over fears of a regulatory crackdown. Yet, according to Morehead this may work in traders’ best interests further down the line.
“Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact,” he said. “Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we’re hearing about come online, they’ll already have their positions.”
This isn’t the first time that Morehead has spoken out and said this is a good time to purchase the digital currency. In April, he was reported as saying the same thing. He also said that he believed the worst was over for it. At the time he mentioned that in the past five years that Pantera has been in operation, Bitcoin has been growing at 165 percent each year.
He added that something that is growing that quickly hardly ever gets below the 200-day moving average. Consequently, when it does it presents a rare opportunity to buy. When Morehead made those comments, Bitcoin was trading at nearly $8,180.
In his most recent remarks on when to buy the digital currency, Morehead gives the advice to purchase a currency once it breaks the 230-day moving average, wait a year and then sell it.
“Without even thinking about it, you make an average of 239 percent,” he added.
According to Morehead, Bitcoin rarely gets cheap to its long-term average, and said that ‘today is a good day to be buying.’
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