One of the leading proponents of the cryptocurrency industry says Bitcoin (BTC) will “re-establish” itself, achieving an annual increase in BTC price of more than 100%.
In a CNBC interview aired on October 5 publish On October 31, Dan Morehead, CEO of hedge fund Pantera Capital, predicted that cryptocurrencies will continue to expand.
Morehead: ‘We could easily see’ a 40% stock crash
Bitcoin closes in October up 29%posting its second-best month of 2023 and returning to 18-month highs in the process.
Looking at macroeconomic conditions, however, Pantera’s Morehead and others worry about another risky asset class — stocks that he calls “significantly overvalued.”
“Stocks are overvalued because the P/E ratio is the same as it was when interest rates came down, but now interest rates are much higher and they’re rising,” he told CNBC.
“If you take an average 50-year equity risk premium and a 10-year bond of 5.00%, stocks should be 23% lower than they are now.”
Morehead cited changes in the U.S. macro environment, with interest rates reaching their highest levels in more than two decades.
“I’m not saying -43% is going to happen overnight, but we have to remember that there were two 13-year periods where stocks were flat — in the 2000s and the ’70s and ’80s,” he continued. topic.
“We could easily see this again.”
Despite the grim outlook, Morehead expressed appreciation for Bitcoin and the largest altcoin, Ethereum (ETH), predicting that the former will more than double each year, in line with average performance so far.
“Bitcoin’s 14-year trend growth rate is 145% per year,” he said.
“That’s my overall prediction – it’s going to re-establish its trend and more than double every year.”
BTC price risks crashing ahead of halving
The good times in Bitcoin’s price performance may only be followed by a new round of pain for holders.
Related: Bitcoin outperforms S&P 500 in October as $40K BTC price predictions pour in
Ahead of the block subsidy halving in 2024, some are worried about the potential for a significant correction.
For Filbfilb, co-founder of the trading suite DecenTrader, the time may focus on one month before the halving – around March next year.
It seemed to be about a month ago.
—filbfilb (@filbfilb) November 1, 2023
If this is the result of the stock market decline, it’s not clear.
As Cointelegraph reported, Bitcoin has still managed to escape its positive correlation with stocks, which research firm Santiment this week called a classic early bull signal.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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