Pantera Capital CEO believes BTC will shatter its all-time high record soon

Dan Morehead, the CEO of blockchain and crypto hedge fund Pantera Capital, believes Bitcoin (BTC) will break its all-time high record of $20,000 in the next year. In a recent letter to investors, Morehead noted that the present global economic turmoil is unprecedented.

I have spent 35 years trading global macro disruptions. This is like no other. This will certainly end the longest global expansion on record. It is likely to have a larger global economic impact than any downturn in recent memory.

The CEO said that an economic fallout bigger than any post-war recession is on the way. He cited information from Goldman Sachs and JP Morgan that shows “a real recession – negative global growth” is coming. The current macro environment is setting the stage for a Bitcoin and crypto rebound over the next 12 months, according to Morehead.

Bitcoin was born in a financial crisis. It will come of age in this one…

Now that we’re in the trillions, the deficit just simply has to have a positive impact on the price of things not quantitatively-easable – stocks, real estate, cryptocurrency relative to the price of money. Said another way, the BTC/USD cross-currency rate will rise.

In Morehead’s opinion, BTC will recover in stages as investors look for new investment opportunities in the face of exploding federal deficits in the US.

The price of bitcoin may set a new record in the next twelve months. It’s not going to happen overnight. My best guess is that it will take institutional investors 2-3 months to triage their current portfolio issues. Another 3-6 months to research new opportunities like distressed debt, special situations, crypto, etc. Then, as they begin making allocations, those markets will really begin to rise.

Morehead added that the Pantera team is preparing itself for a crypto surge. 

My only job is to manage your money in the cryptocurrency markets. I strongly believe that the policy set will ultimately be net positive for cryptocurrencies. That is how we are positioning.