Bitcoin‘s (BTC-USD) current surge might only be the beginning of a more significant upward trajectory, according to Dan Morehead, one of the earliest professional investors in the cryptocurrency in the US. Morehead, who founded Pantera Capital Management, expressed his bullish stance on Bitcoin, attributing his optimism to the persistent skepticism that surrounds the asset. His firm’s Bitcoin fund, launched in 2013 when Bitcoin was priced at $74, has since delivered an astonishing return of more than 132,000%. On Tuesday, Bitcoin was trading around $93,000, having nearly touched $100,000 the previous week, reflecting a yearly gain of approximately 120%.
Morehead’s confidence in Bitcoin’s potential is further bolstered by what he perceives as a shift in regulatory attitudes. He suggests that Bitcoin’s historical regulatory challenges are now becoming supportive factors, especially with the incoming administration of President-elect Donald Trump, which he believes will foster a more crypto-friendly environment. This change could propel Bitcoin’s value to unprecedented heights, with Morehead predicting a possible peak of $740,000.
Pantera Capital is not resting on its laurels with its initial Bitcoin success. Morehead disclosed that their new venture, Pantera Fund V, is actively seeking investments across the blockchain sector, including private tokens and unique opportunities like acquiring locked Solana (SOL) tokens from the FTX estate. This fund aims to raise $1 billion, following the $1.25 billion raised for their previous blockchain fund. Morehead highlighted the strategic timing of their fundraising, having secured capital just before the crypto market’s downturn in 2022, which allowed them to invest when opportunities were ripe due to the exit of generalist firms from the space.
Morehead also commented on Trump’s suggestion of establishing a US Bitcoin stockpile, viewing it as a rational move. He critiques holding gold in government reserves as an outdated strategy for wealth storage, proposing Bitcoin as a modern, appreciating asset that could serve as a reserve currency.
This viewpoint from Morehead, combined with Pantera’s investment strategies, underscores a belief in Bitcoin’s enduring value and the broader potential within the cryptocurrency and blockchain sector, hinting at a future where digital assets could play a more significant role in both investment portfolios and national reserves.
Reference: Bloomberg
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