Bitcoin (BTC) will “reassert itself” to generate annual BTC price gains of over 100%, says one of the crypto industry’s leading proponents.
In an interview with CNBC broadcast on October 5 and published On October 31, Dan Morehead, CEO of hedge fund Pantera Capital, predicted continued crypto expansion.
Morehead: ‘We could easily see’ a 40% inventory collapse
However, when it comes to macroeconomic conditions, Pantera’s Morehead and others are concerned about another risky asset class — what he describes as “massively overvalued” stocks.
“Stocks are overvalued because the P/E is the same as it was when rates were falling, but now rates are much higher and rising,” he told CNBC.
“If you take the 50-year average stock risk premium with a 10-year security of 5.00%, stocks should be 23% lower than today.”
Morehead discussed changing macroeconomic conditions in the United States, with interest rates at their highest levels in more than two decades.
“I’m not saying -43% is going to happen overnight, but we have to keep in mind that there have been two 13-year periods where stocks have remained stable – in the 2000s and in the 70s and 80s,” he continued. subject.
“We could easily revisit this.”
Despite the grim prognosis, Morehead was complementary to both Bitcoin and the larger altcoin Ethereum (ETH), forecasting that the former should more than double each year, which corresponds to the average performance recorded to date.
“Bitcoin has a 14-year trend growth of 145% per year,” he said.
“That’s my generic forecast: it will reaffirm its trend and more than double every year.”
BTC price at risk of collapsing by half
Good times for BTC price performance can only follow a new bout of pain for hodlers.
Before the halving of block grants for 2024, some feared that a major retracement would occur.
For Filbfilb, co-founder of the DecenTrader trading suite, the timing will likely focus on a month before the halving, around March next year.
About a month before, it seems, the meta.
– filbfilb (@filbfilb) November 1, 2023
If this were to result from a fall in stocks, the scenario would not be clear.
Like Cointelegraph reportedBitcoin nevertheless managed to abandon its positive correlation with stocks, which research firm Santiment this week called a classic signal of the start of a bull market.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.