Why Pantera Capital says this bear market of Bitcoin is different

According to Morehead, Pantera Capital makes its investment decisions on the basis of a five to ten year perspective. As a result, his strategies are not affected by "daily" fluctuations in bitcoin prices.

"We always try to think [ahead] Five to ten years of investing and researching positions that hold up well over a long period, "explained Morehead. "We do not try to wrap ourselves in the cycles of price action."

Trust & Believe: Institutional investors will come

As financial media and day-trading mind-busting investors stop dealing with hourly cryptographic price changes, Morehead is not experiencing the current slowdown.

He believes that institutional investments will eventually come. However, he acknowledged that the current price decline was deterring them from pulling the trigger.

"People have been talking for years about the imminent surge of institutional money coming into the cryptography market," Morehead said. "I think we now have the conditions to make that happen."

"Institutional investors really want to have a well-known and regulated custodian. We have not really had that in the past. "

Morehead says it will require great first-rate depositories to attract money from institutions in the market. However, he noted that this was already happening, with Bakkt and Fidelity of ICE making big changes in space.

Institutions will invest when the price of bitcoin increases

Institutional investors have a herd mentality. | Source: Pixabay

As institutional investors are reluctant to take risks in their investment approach, Morehead says they will not start betting on bitcoin until its price rises. He pointed out that this went against the often quoted strategy of "buy low and sell high".

But as global institutions have a group mentality and need external signals on which an badet is worth investing, we should not expect to receive much money before cryptocurrency prices start to climb.

"The big wave of institutional money will probably not start until prices start to rise. We have seen it in the two previous cycles. "

"Crypto markets are even more extreme than normal markets. The entries into our Bitcoin fund have been mbadively procyclical. "

"We started the fund when bitcoin was $ 65. Very few investors have entered until the price reaches 400 or 500 dollars. And then, when the price reached $ 1,000 in 2013, we had mbadive inflows. And when the Crypto Winter arrived in 2014-2015, it really dried up. "

As we are in the middle of a protracted bear market, Mr. Morehead said it was understandable that many investors remain "sidelined", while waiting for conditions to improve.

Expecting regulatory clarity from SEC in 6 to 9 months

Asked about the impact of regulatory uncertainty on the sector, Dan Morehead said that the IRS and the CFTC had already issued statements. The main current manager is the Securities and Exchange Commission.

"The SEC is in the process of determining what standards should be set for what should be securities and what will not be," he says. "In the next six to nine months, this will be solved. Once this is clear, it will be easier for stock exchanges and investors to know how to manage these types of badets. I think in the next 9 months that will be fixed. "

In the meantime, here is an interview that Morehead made last week on the evolution of the investment landscape.

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