On Tuesday, as Bitcoin (BTC) prices faced a pullback, Pantera Capital founder and CEO Dan Morehead expressed optimism about the future of cryptocurrencies. In a recent interview, he stated that the current market challenges may be temporary and the rebound may not be over yet.
Positive outlook for Bitcoin under regulatory changes
Reflecting on Pantera Capital's journey since launching its Bitcoin fund 11 years ago, Morehead acknowledged that they faced skepticism in 2013. 'In 2013, people completely thought we were crazy,' he said, highlighting the ongoing negative sentiment surrounding Bitcoin.
The executive believes that this widespread pessimism is a positive signal, reinforcing his optimistic stance. 'Many people still have a negative attitude. This is far from a bubble,' Morehead told Bloomberg.
Pantera's Bitcoin fund has generated a substantial return of 132,118% since its inception in July 2013, when Bitcoin was valued at just $74. Morehead predicts that Bitcoin could ultimately reach $740,000 and attributes this potential growth to the changing regulatory environment.
Morehead emphasized the shift from '15 years of regulatory headwinds to tailwinds,' particularly mentioning the more cryptocurrency-friendly policies expected to be enacted by the incoming Donald Trump administration.
Pantera's original Bitcoin fund gained attention for being the first to offer U.S. investors direct exposure to cryptocurrency. Bitcoin's price approached $100,000 last week, with a recent trading price of about $91,000, having surged approximately 120% this year.
Advocating for cryptocurrency reserves
Morehead also discussed Pantera's new risk fund Pantera Fund V, which aims to raise $1 billion to invest in various blockchain assets, including private tokens and 'special opportunities' such as locked Solana (SOL) tokens from FTX assets.
'Fortunately, we raised this large fund before the entire industry collapsed in 2022,' Morehead commented, noting that the timing allowed them to effectively allocate capital over the past few years.
The company's founder noted that many 'integrated companies' have exited the cryptocurrency space, leading to fewer competitors in the market. Reportedly, this environment has allowed Pantera Capital to obtain 'better pricing and more favorable deals.'
Morehead, who previously worked as a trader at Goldman Sachs, also commented on the U.S. Bitcoin reserve plan proposed by Trump. He believes the idea is 'rational' and considers holding gold as a reserve an 'outdated' way of storing wealth. 'If they put some of that money into Bitcoin, it would be an excellent way to hold reserve currency,' he concluded.
At the time of writing, the leading cryptocurrency has recovered to the level of $93,000, while it has dropped 1.5% in the last 24 hours.