Crypto will reach “literally billions” of users by 2027: CEO of Pantera

Key takeaway

  • Pantera CEO Dan Morehead has predicted that cryptocurrencies will hit billions of users over the next four to five years.
  • He said cryptocurrency prices would rise as adoption grows based on supply and demand principles.
  • He also expressed his opinion on the current market decline, saying he thinks cryptocurrencies bottomed out during the June lender liquidity crisis.

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Morehead said cryptocurrencies were in “a secular bull market” and could trade independently of traditional risk assets for years to come.

Pantera CEO maintains a bullish crypto position

Dan Morehead made it clear that he is not troubled by the ongoing crypto winter.

In a Wednesday interview with CNBCSquawk Box, the founder and CEO of Pantera, discussed the current state of the digital asset space, affirming his confidence in the future of the blockchain despite the steep decline in the market from all-time highs.

Morehead said he believes cryptocurrencies are in “a secular bull market” that has been caught on a downtrend with other risk assets in recent months, predicting the nascent asset class could lose its close correlation with others. markets in the future. “I can easily see a world in a few years’ time where the same risk assets may still be in trouble, but blockchain is back to all-time highs,” she said, addressing the adverse macro conditions affecting stocks and cryptocurrencies. this year.

Morehead said the value of cryptocurrencies would increase if adoption grew, making a high prediction on how the asset class could gain use in the coming years. “Hundreds of millions of people use the blockchain today, I think in four or five years there will be literally billions of people,” she said.

Bitcoin has grown to reach around 200 million users worldwide since it launched as a niche movement Cypherpunk in 2009, while the broader cryptocurrency market approached 300 million users earlier this year. according to Crypto.com data. However, space suffered from a month-long bear market, casting doubt on the possibility of rapid short-term growth.

The interest in retail decreases

When cryptocurrencies experience rallies like the one that saw the market hit $ 3 trillion in 2021, it tends to attract hordes of new users. But many of them give way when they experience bearish price volatility at the end of the market cycle, slowing adoption. Bitcoin is trading over 70% lower than its November 2021 peak today, and mainstream interest in the technology has plummeted due to worsening macro conditions and weak market sentiment.

According to Google Trends, searches all over the world for “crypto” and “Bitcoin” they have reached pre-2021 lows in recent weeks. Google search trends are a popular metric for gauging interest in traditional cryptocurrencies; Searches for “Bitcoin” peaked during retail craze periods in December 2017 and May 2021.

Morehead commented on the ongoing crypto winter, saying he thinks “we’ve pretty much been through the worst.” He referred to the liquidity crisis that hit space in June, leading to a series of bankruptcies among centralized cryptocurrency lenders such as Celsius and Voyager Digital. “When you have a market, you go down 75, 80%, [if] add any leverage, it won’t be easy, “he said, arguing that June 2022 marked a low for the current market cycle.

Morehead also pointed out that Bitcoin and Ethereum’s market cap dominance hit a low of 57% on Tuesday, adding that he thinks there are “hundreds of really cool projects” that could see growth in the future.

While Morehead maintains a bullish outlook, it’s worth noting that his Pantera company is known for investing with long-term time horizons. In the short term, there are many reasons to take a more pessimistic view of Bitcoin and the wider space, including market exhaustion, rising inflation, and the expectation of further interest rate hikes by the Federal Reserve and lack of potential catalysts following Ethereum “sell the news” merger event.

According to CoinGecko data, the global cryptocurrency market capitalization is currently around $ 950 billion. This is about 70% less than its peak.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

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