The CEO of the investment firm Pantera Capital, Dan Morehead, recently doubled down on his predictions for the Bitcoin price in 2020, saying that BTC is a “serial killer” which is correlated with traditional risk assets “only when the world freaks out.” Speaking on Peter McCormack’s ‘What Bitcoin Did’ podcast published last Friday, Morehead said that Bitcoin will explode this year.
The CEO of Pantera Capital also revealed his overall view of Bitcoin as a new technology and a potential disruptor of old systems. He called it “a serial killer” which will disrupt not only one, but “dozens of different industries.” As Morehead said:
“Some people call it digital gold, and yes, it’s awesome, it is digital gold, but you can keep registries of all kinds of other, non-financial assets on a blockchain. You can do so many different things with bitcoin and a blockchain, and that’s why I think it’s gonna rip through dozens of different markets.”
He was in the Bitcoin price news for stating that the dominant coin will “bring the Internet to finance” – referring to an earlier forecast made in a conference call (and shared below) with investors on April 7, where he noted that the crypto markets “will really explode about 3 to 9 months from now.”
Investors are most likely to start focusing on new opportunities a couple of months from now, as the focus moves away from the initial market panic, he explained.
“From all the cycles I’ve seen over 35 years, I have a very strong intuition that bitcoin will hit a record price within the next 12 months, and maybe, like, way higher than that,” Dan Morehead said.
On the very interesting cryptonews topic of whether Bitcoin is correlated with the stock market, Morehead noted that BTC only correlates with the S&P 500 during panics, but this correlation is just temporary. On the contrary, the analyst said that BTC has “very low correlation over long periods of time,” adding that “when the world freaks out, it is correlated.”
“There have been five big downdrafts in the S&P 500 since bitcoin was liquid to trade, and in each of those, bitcoin did become positively correlated with the S&P, and did drop with the S&P. However, that correlation breaks down after about eight weeks, and it then goes back to essentially zero correlation,” the CEO said.