Pantera Capital CEO Dan Morehead believes crypto assets will diverge from traditional assets such as stocks, bonds and real estate.
In a CNBC interview, the crypto hedge fund CEO says the prices of digital assets will likely be going up in a year as interest rate hikes cause traditional assets to trend downwards.
“One of our central views is that although obviously, interest rates have to impact bonds mathematically and they almost have to impact stocks and then other things like real estate will certainly be targets of the Feds [Federal Reserve Bank], there are some asset classes like cryptocurrencies that should be uncorrelated or disconnected from the interest rate markets.
Although it hasn’t happened yet, crypto has been very correlated with risk assets, I can easily see a world, in say a year when stocks and bonds are down, real estate is down but crypto is rallying and trading on its own. Very much like gold does. Or soft commodities like corn, and soybeans. All doing very well. So that’s the world that I think we will see.”
Morehead says the fundamentals of crypto assets are still appealing from an investor’s perspective.
“The fundamentals in crypto are still very positive. Obviously, we had a huge bull market, now a huge bear market. But I have been through five of those so far and for ten years we have been investing in crypto. So it’s not unprecedented, we’ve seen it a lot.”
Pantera Capital currently boasts $5.1 billion in assets under management.