Bitcoin Predicted to Surpass 100% Annual Gain Amid Market Uncertainty, Says Pantera Capital CEO
Summary:
Dan Morehead, CEO of Pantera Capital, in a CNBC interview predicted an upswing for BTC, foreseeing it to gain over 100% annually. Despite Bitcoin closing October with a 29% increase, Morehead expressed concerns over the macroeconomic conditions and overvalued stocks. He predicted both Bitcoin and largest altcoin Ethereum to double annually, aligning with their previous performances. However, before the 2024 block subsidy halving occurs, expectations are high for substantial market retraction. Despite the uncertainties with equities, Bitcoin has managed to disconnect its correlation with stocks, indicating an early bull market signal.
Dan Morehead, the leader of Pantera Capital, in a recent conversation with CNBC broadcasted on Oct. 5 and made public on Oct. 31, forecasted an upward trend for cryptocurrency, Bitcoin in particular.
He highlighted a strong probability of Bitcoin securing above 100% in annual BTC price gains. Bitcoin concluded October with a 29% escalation, marking its second successful month of 2023 by hitting eighteen-month highs.
However, Morehead, like many others, eyes macroeconomic conditions with a sense of crisis, particularly exceedingly priced stocks. He expressed to CNBC, "Stocks are overpriced in relation to the P/E ratio, which remains steady despite the rise in rates". He continued to expound stating, "Considering the 50-year average equity risk premium with a 10-year note at 5.00%, it's reasonable for stocks to be 23% below today's levels."
He attributed these trends to the changing financial conditions in the U.S., with interest rates reaching peak levels unseen for more than two decades.
"There's a possibility of a dramatic drop, not necessarily immediate but it is important to remember that there have been instances like the 2000s and the 70’s, 80’s where equities remained stagnant for over a decade", Morehead explained.
Keeping the bleak outlook for stocks, Morehead extended positive remarks for Bitcoin and the largest altcoin Ethereum (ETH), projecting them to double yearly in accordance with their past performance.
According to Morehead, "Bitcoin typically shows a growth trend of 145% per annum over a period of 14 years. I infer that the pattern will persist and it will graciously escalate every year".
On the contrary to this positive forecast, some market watchers worry of a retracement occurring before the 2024 block subsidy halving. Filbfilb, co-founder of trading suite DecenTrader, foresees this event likely transpiring a month before the halving which is around March next year.
Concerning an equities downfall, Bitcoin's future isn't concrete. Despite this, Bitcoin has managed to decouple from its positive correlation with stocks, which Santiment research firm declared this week as an early bull market indicator.
This piece doesn't present investment advice or suggestions. Each investment and trading move holds its set of risks, and readers are urged to carry out individual research prior to decision-making.
Published At
11/1/2023 4:18:24 PM
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