The current economic crisis will favorably affect Bitcoin and allow it to reach $20,000 within a year. This is stated in the appeal of Pantera Capital crypto hedge fund CEO Dan Morehead to investors, writes The Daily Hodl.
Morehead noted the large-scale impact of the crisis on the global economy, comparable to the recession of the post-war years. He said that he is trading in destabilizing the macroeconomy. In his opinion, this crisis is not like the previous ones. It will surely put an end to the long economic boom and affect the global economy more than any other decline in recent history.
At the same time, the resulting deficit will serve as an impetus for the growth of the cryptocurrency price, the head of Pantera Capital believes. In his opinion, Bitcoin was born in a financial crisis, this time it will come of age. Now that the bill has gone into trillions, the deficit should have a positive effect on the price of instruments that cannot be quantitatively mitigated: stocks, real estate, cryptocurrencies relative to the value of money. In other words, the BTC/USD exchange rate will rise.
To establish a new price record, he said, the first cryptocurrency needs 12 months. Institutional investors will need 2-3 months to settle current portfolio problems. Another 3-6 months will be spent searching for new opportunities, such as bad loans, special cases, cryptocurrencies and so on. Then, when they begin to invest, these markets will move on to growth.
Based on the future growth of bitcoin, Morehead builds Pantera Capital's strategy, noting that his only job is to manage money in the crypto market. He firmly believes that the established policy will ultimately play into the hands of cryptocurrencies.