Dan Morehead, founder of Pantera Capital has made a rather dramatic statement by telling Bitcoin investors to ‘Stop overreacting’.
Why the crypto community should ‘Stop overreacting’
Pantera Capital is the first U.S. cryptocurrency hedge fund. It is a fact that this is not the first bear market Morehead has experienced and therefore his advice can be regarded as helpful.
Since Bitcoin reached its all-time high in December, the price has declined by 67% this year.
Morehead told the media that crypto investors have to keep in mind that Bitcoin and cryptocurrencies are a very early-stage venture. The industry is unique in the sense that it has real-time price feed. He called out those who get overly excited about the price of Bitcoin and said they can easily overreact.
To be honest, the price of Bitcoin this last week has been shocking, to say the least. Investors were hoping for a nice increase upon news of the SEC (U.S. Securities and Exchange Commission) approving a Bitcoin ETF this year. Upon news that the SEC has been delayed, the price of Bitcoin spiraled down again leaving many in a state of dismay, to say the least. Also, the SEC did not approve the Winklevoss twin’s latest bid and its back to the drawing board for Gemini.
Morehead on Bitcoin ETF
However, Morehead has something to say about the SEC approving the proposed Bitcoin ETF. He said it should not come as a surprise that the process has been postponed and it may take a long time before they come to a decision. He compared it to the approval of copper as an ETF. According to Morehead copper has been around for more than 10 000 years, yet it took the SEC a very long time to approve its ETF certification. He said the SEC is cautious when it comes to approving an ETF.
Morehead said the crypto community should rather be focusing on Bakkt’s partnership with Microsoft and Starbucks. Bakkt was created by the Intercontinental Exchange (ICE) who is the New York Stock Exchange operator. The partnership was announced earlier this week and will allow for real-world usage of cryptocurrencies. Read more about this announcement on the Bitmart blog, click here.
Morehead the announcement entails so much more than merely allowing crypto hodlers to buy coffee. He predicts that this will have a ‘profound impact’ on the industry in the next 5 – 10 years.
The price of Bitcoin today is $6, 423.84, according to Coinmarketcap.