“Great Time to Buy Cheap Crypto Before It Goes Back Up” Says Crypto Hedge-fund Owner
We went from all-time highs in December 2017 to the bouncing up and down of the past few months quite quickly. Many newbie crypto investors that bought in during the top of the market have been frustrated by the lack of movement of the crypto coins that they bought so there has been some discontent in crypto related message boards online.
Never fear because crypto hedge-fund owner, Dan Morehead, went on record saying that now is the best time to buy crypto if you are wanting to get into the market because he anticipates it climbing rapidly soon and we may never see prices this low again.
Should We Listen to Him?
Honestly, I tend to listen to those that are active in financial markets and have the pulse of the market under their fingertips. Maybe this statement is a way for him to shamelessly plug crypto publicly so the prices start to rise but I don’t think so.
He has a professional reputation to protect. Who would trust a fund owner that publicly shills but doesn’t provide real value? I know I wouldn’t. But, I don’t usually invest in hedge funds myself anyway.
“All cryptocurrencies are very cheap right now,” said Morehead, who serves as CEO and co-chief investment officer of Pantera.”It’s much cheaper to buy now and participate in the rally as it goes,” Morehead said Thursday on Fast Money.
Bitcoin hit an all time high of about $19,500 in December and then rocked the investment world by decreasing sharply to about $6,000 shortly after. Right now, Bitcoin sits at about $7,500 so we have made some strides in rebounding. This is good news!
The Crypto Market As A Whole
Cryptocurrency is a volatile market and has been since its inception about a decade ago. Many investors are nervous about impending regulation because there are so many unanswered questions as to what that will look like.
But, if you allow that to stop you from investing or wanting to get out of the market entirely then just go now because no one will really miss you. Forgive me if this sounds harsh, but investing is not for everyone and that’s ok if you don’t want in.
“Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact,” he said. “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.”
Tips from the Hedge Fund Owner
In his interview, Morehead suggested for investors to buy into a crypto once it breaks out of its 230 day moving average then wait a year and sell it off. His belief is that you will make an average of 239 percent return without having to do any work or even really thinking about it.
If you look to Bitcoin, it has happened five times in the last six years alone so the odds of this strategy being successful seem to be pretty high.
Morehead, also, made the point that in the financial industry today is a good day to be buying because it rarely ever gets cheap to the long-term average.
A little background on Morehead is that his company, Pantera Capital Management, was founded in 2013 and was one of the first United States based Bitcoin companies. This company owns 35 pre-auction ICOs and 25 liquid blockchain currencies including (but not limited to) Ripple, Ethereum, and Bitcoin.
I would love to hear your thoughts on the future of the crypto market and the investment strategy that was mentioned here. It seems feasible to me if you think you have the stones to hold for a year without caving to the pressure of a volatile market.
Thanks for reading!
Ivy
