Ongoing Crypto Winter Signals Future Stability: Pantera Capital CEO

By Swati Kishore

The ongoing crypto winter is the talk of the town as the plummeting cryptocurrency prices have everyone wondering when the bear trend will reverse.

Despite everything, Bitcoin, cryptocurrency, and their underpinning technology of Blockchain hold a lot of potentials.

The Chief Executive Officer of the Blockchain investment fund Pantera Capital, Dan Morehead, holds similar views.

Morehead has asked investors to relax as the crypto industry has in the past made its way through such rough waters.

According to the CEO, the current market slump or the ‘crypto winter’ is a sign of things becoming stable in the future.

Morehead illustrated in a podcast interview how this is the second crypto winter that the world has witnessed. He said,

“There was one in 2014 to 2015. In the previous one, I had more of a worry in the pit of my stomach about whether blockchain was actually going to work. There were real regulatory risks. With this one, the underlying fundamentals are much, much stronger than they were in the 2014-2015 Crypto Winter.”

Morehead also elaborated on how his investment firm makes decisions based on a 5 to a 10-year outlook of the industry.

As per the CEO, Pantera Capital’s strategies are not impacted by the short term fluctuation in the prices of Bitcoin. He explained,

“We are always trying to think ahead five to 10 years in our investing and looking at the positions that would do well over a long period of time. We’re not trying to get wrapped up in the cycles of the price action.”

Morehead is also positive on the future entry of institutional investors in the crypto markets, while at the same time he did accept that the ongoing crypto winter has been a barrier to their entrance.

According to the CEO, institutional investors will enter the market once institutional-grade custodians such as Fidelity and Bakkt are active.

On being asked about the impact of regulatory uncertainty in the crypto industry, Morehead replied saying that with CFTC and IRS already issuing statements, the wait is now on for the SEC.

Why what Morehead says matters is because unlike other crypto commentators, Pantera Capital has a vested interest in the markets. Despite the crypto winter, the investment firm has been actively investing in Blockchain-based startups.