Pantera Capital CEO Dan Morehead believes crypto belongings will diverge from conventional belongings comparable to shares, bonds and actual property.
In a CNBC interview, the crypto hedge fund CEO says the costs of digital belongings will probably be going up in a 12 months as rate of interest hikes trigger conventional belongings to development downwards.
“Considered one of our central views is that though clearly, rates of interest need to influence bonds mathematically and so they virtually need to influence shares after which different issues like actual property will definitely be targets of the Feds [Federal Reserve Bank], there are some asset courses like cryptocurrencies that ought to be uncorrelated or disconnected from the rate of interest markets.
Though it hasn’t occurred but, crypto has been very correlated with danger belongings, I can simply see a world, in say a 12 months when shares and bonds are down, actual property is down however crypto is rallying and buying and selling by itself. Very very like gold does. Or gentle commodities like corn, and soybeans. All doing very properly. In order that’s the world that I believe we’ll see.”
Morehead says the basics of crypto belongings are nonetheless interesting from an investor’s perspective.
“The basics in crypto are nonetheless very constructive. Clearly, we had an enormous bull market, now an enormous bear market. However I’ve been by way of 5 of these thus far and for ten years we’ve got been investing in crypto. So it’s not unprecedented, we’ve seen it rather a lot.”
Pantera Capital at the moment boasts $5.1 billion in belongings below administration.
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