Crypto Hedge Fund’s Head: Buy Bitcoin While It’s Cheap
June 4, 2018
“Bitcoin may have reached its bottom this year” founder of Pantera Capital Management Dan Morehead stated.
This year cryptocurrencies have sunk by approximately 65% compared to their maximum levels last year.
“It's much cheaper to buy now and participate in the rally as it goes,” Morehead continued.
Bitcoin, one of the most popular cryptocurrencies, reached it maximum of $19,500 in December last year and fell below $6,000 in February. Now the cryptocurrency costs about $7,500.
Volatile nature of cryptocurrencies has made many market observers to come up with comments on the problem of the upcoming regulation. Until now cryptocurrency is mostly a non-regulated industry.
But this may work in the favor of investors, Morehead says:
“Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact. Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we're hearing about come online, they'll already have their positions”.
That’s what he recommends for investors: buy the currency as soon as it reaches its 230-day moving average, wait for a year and sell it:
“Without even thinking about it, you make an average of 239 percent”.
The strategy worked perfectly with Bitcoin that saw this happening for “about five times in the last six years”.