Crypto Hedge Fund Founder Dan Morehead tells Bitcoin Investors to stop Overreacting
Bitcoin Investors should stop overeacting
Dan Morehead the CEO of Panthera Capital has sent a message to Bitcoin investors. The investor warned investors against overreacting and selling their Bitcoin because of the 67 percent loss since Bitcoin’s all-time high in December 2017. In December Bitcoin’s price almost hit the 20,000 dollar mark. However, since January, the price has dropped significantly. Bitcoin which is the most popular digital currency is currently trading at around 6,500 dollars which is a massive drop.
This price drop has caused panic among some investors leading to massive sales. According to Morehead:
“It’s very important to remember that Bitcoin is still very young. The beauty about is that it has a real-time price feed which is very good and unique. At the moment people tend to overreact about the price and other times get overexcited.”
Bitcoin price has seen a continuous decline in the last several weeks a decline attributed to the realization by investors that the SEC is not likely to approve Bitcoin ETFs this year. In July SEC decline to approve Winklevoss twin’s bid to create an ETF and the regulator is still silent about the ruling on other institutions which have applied on the same. Morehead noted that the decline by SEC should not have come as a surprise to investors. He added that investors should prepare to wait for a long time before seeing similar products trading in the regulated exchange.
Morehead added that:
“It will take a long time before we see SEC approve ETFs. The last asset we saw approved for ETF was copper and remember that copper has been around for more than 20,000 years. We have had this ETF rejection story for the last five years and SEC still seems to be very cautious about the same.”
While Bitcoin investors are focusing of the reluctance by SEC to approve Bitcoin ETFs Morehead said they have ignored the announcement by world’s largest stock exchange which is launching a crypto-focused subsidiary which will be just as good as the ETFs in helping to make cryptocurrency mainstream. New York Stock Exchange has already partnered with Starbucks and Microsoft to come up with ways of taking cryptocurrency assets mainstream. NYSE will provide institutional investors with access to a regulated crypto custodian by offering than with physically settled Bitcoin futures products.
The hedge fund founder has been urging crypto investors not to do panic sales since they crypto sector will still grow. He urged them to feel optimistic about the positive news. He concluding by stating that Bitcoin’s price is still up by 82 percent up year on year.