Digital currency investor claims bitcoin hit rock bottom, but will recover

For good or for bad, bitcoin keeps making headlines. A couple of months ago, it was due to the historic rise, as the price of the world’s first cryptocurrency reached almost $20,000. On the other hand, the news has been less flattering recently. Bitcoin’s price has dropped to a recent low of around $6,000. What’s next?

Investor Dan Morehead claims that Bitcoin will soon rise to its former peak levels and even surpass them.

Morehead is the founder/CEO of an investment and hedge fund firm called Pantera Capital, which now invests solely in cryptocurrencies. In an interview with CNBC’s Fast Money, Morehead broke down his reasoning for such a claim. “There’s such an institutional appetite to get exposure to this. It’s a half-a-trillion-dollar asset class that nobody owns. That’s a pretty wild circumstance.” Morehead continued, “And bitcoin is still so under owned by institutional investors that it trades at its own beat.”

Lack of institutional level adoption has been the drumbeat for bitcoin’s bulls for some time. With so little exposure to institutional funds, analysts such as Morehead believe that the rising adoption curve will inevitably boost prices.

Detractors, of course, would argue the opposite – particularly given the volatility and confusion that surround cryptocurrencies. Nevertheless, the nascent market continues to attract investors, though most enterprise-level investment houses remain wary.

Pantera Capital has made its mark on bitcoin and other cryptocurrencies, as the company grew into a new market leader in the space. Having existed for ten years, before jumping into the cryptocurrency market in 2013, the company purchased Bitcoin when it was only worth $72. They’ve seen returns of over 22,000%. At bitcoin’s peak of $19,500, Pantera Capital boasted over $2 billion in assets.

However, even with the drop from $19,500 to below $6,000, Morehead and Pantera Capital aren’t too concerned, particularly since Morehead predicted the drop back in December. Now, he’s confident that it will rise again. The price has begun recovering already this week to above $8,000.

Pantera Capital primarily trades popular cryptocurrencies such as bitcoin, ethereum, and ripple. Nevertheless, they’ve also found success through launching their own initial coin offering (ICO), which saw returns of 549%.