Pantera CEO Dan Morehead believes that worldwide cryptocurrency use will skyrocket in the next four to five years, resulting in price increases. Pantera CEO Dan Morehead predicts that cryptocurrency will reach billions of users within the next four to five years.

Based on supply and demand concepts, he predicted that crypto prices would climb as use increased.
He also commented on the current market downturn, claiming that crypto touched a bottom amid June’s lender liquidity crisis. Morehead suggested that cryptocurrency was in a “secular bull market” and might move independently of traditional risk assets in the coming years.

Pantera CEO Retains Bullish Crypto Position

Dan Morehead has stated that he is unconcerned about the continuing crypto winter.
The Pantera founder and CEO highlighted the present condition of the digital assets field in a Wednesday interview with CNBC’s Squawk Box, expressing his faith in blockchain’s future despite the market’s dramatic drop from all-time highs.

Morehead believes that cryptocurrency is in a “secular bull market” that has been in a downturn with other risk assets in recent months, and that the new asset class may lose its strong association with other markets in the future. “I can easily imagine a scenario a few years from now where risk assets are still struggling but blockchain is back to all-time highs,” he says.

He was speaking about the negative macroeconomic factors that have impacted equities and cryptocurrency this year.
Morehead suggested that the value of cryptocurrency would rise as adoption increased, making a bold forecast about how the asset class may grow in popularity over the next several years. “Hundreds of millions of people utilize blockchain today; I believe it will be literally billions of people in four or five years,” he said.

According to data, Bitcoin has expanded to around 200 million users globally since its inception as a small Cypherpunk movement in 2009. The larger crypto industry was approaching 300 million users at the start of the year. However, the sector has been in a bear market for some months, casting doubt on the prospect of near-term strong development.

Retail Interest Is Declining

When the cryptocurrency market undergoes bull rallies like the one that saw the market reach $3 trillion in 2021, it tends to draw swarms of new users. However, many of them depart the area when they encounter price volatility when the market cycle finishes, limiting adoption. Bitcoin is now trading more than 70% lower than it was in November 2021, and public interest in the technology has dwindled as macroeconomic conditions deteriorate and market mood deteriorates.

According to Google statistics, worldwide searches for “crypto” and “Bitcoin” have just reached pre-2021 lows. Google search trends are a prominent statistic for gauging public cryptocurrency enthusiasm; “Bitcoin” searches peaked during retail-driven craze episodes in December 2017 and May 2021, respectively.

Morehead addressed the current crypto winter, claiming that “we’re very much past the worst of it.” He referred to the June liquidity crisis, which resulted in a string of bankruptcies among centralized crypto lenders such as Celsius and Voyager Digital. “When you see a market fall down 75, 80%, [if] you add any leverage, it’s going to be challenging,” he added, arguing that the current market cycle will bottom in June 2022.

Morehead also stated that Bitcoin and Ethereum’s market capitalization dominance fell to 57% on Tuesday, and that he believes there are “hundreds of incredibly fascinating initiatives” that might see development in the future.

Although Morehead remains optimistic, it is important remembering that his business Pantera is known for investing with long-term time horizons. In the short term, there are numerous reasons to be pessimistic about Bitcoin and the broader space, including market exhaustion, soaring inflation and the expectation of additional Federal Reserve interest rate hikes, and a lack of potential catalysts following Ethereum’s “sell the news” Merge event.

The worldwide cryptocurrency market capitalization is presently above $950 billion, according to CoinGecko data. That is almost 70% less than its peak.

Natasha Dean

With an eye for detail and understanding of this exciting industry. My experience has given me an understanding of crypto trends and how to effectively break them down. I have a soft spot for NFTs and the Metaverse.