Dan Morehead, chief executive officer of Pantera Capital, thinks crypto assets will separate from conventional assets like equities, bonds, and real estate.
In an interview with CNBC, the CEO of a crypto hedge fund predicts that the values of digital assets would certainly increase within a year, whereas the prices of conventional assets will likely decline.
“According to one of our main principles, there are asset classes such as cryptocurrencies that should be mutually independent or separated from the interest rate markets, despite the fact that interest rates have to affect bonds and stocks, and that other things such as real estate will definitely be the focus of the Federal Reserve Bank.
Despite the fact that it hasn’t occurred yet, crypto has been highly connected with risk assets; I can easily see a scenario where within a year in which equities and bonds are down and real estate is down, but crypto is rebounding and trading independently.”
According to Morehead, the basics of crypto are still attractive from an investor’s standpoint.
“Cryptocurrency fundamentals remain quite bullish. Clearly, we had a massive bull market and now a massive bear market. But I’ve already gone through five of them, and we’ve been investing in cryptocurrencies for 10 years. Therefore, it’s not unusual, we’ve seen it many times.”