Bitcoin has been cheaper relative to its trend than at any other time in 20.3% of its history. Now is an excellent time to buy Bitcoin, says Pantera Capital’s cryptocurrency hedge fund founder Dan Morehead.
For new investors, it’s best to buy when the market is well below trend. Now is one of those times.#Bitcoin has only been this “cheap” relative to its trend 20.3% of the past 11 years.
More perspectives on market timing in our June investor letter: https://t.co/AOvhFyxBJh pic.twitter.com/2bsxbw5Iay
— Dan Morehead (@dan_pantera) June 16, 2021
In his monthly letter to investors, he reminded readers that assets should be bought below trend.
“It’s human nature: we want to buy on market strength, when the devil FOMO whispers in our ear,” explained Morehead.
According to the Pantera Capital chief, the significant Bitcoin rally over the past year does not imply the asset is overvalued.
“Year-over-year profits have never exceeded the chart during previous bull cycles. Currently, the annual return stands at 281% and looks quite reasonable given the cash printed during this period,” noted Morehead.
Earlier in January, the head of Pantera Capital predicted Bitcoin’s price to rise to $115,000 by August.
In late May, television host and founder of Heisenberg Capital Max Keiser predicted Bitcoin to reach $220,000 in the second half of 2021.
Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.