Dan Morehead, the CEO and founder of renowned blockchain venture fund Pantera Capital. Then, argues that digital assets will be the “ideal place” to store capital. Of course, in the aftermath of the US Federal Reserve’s interest rate hikes.
Investors in the stock and cryptocurrency markets are particularly focused on the Fed’s strategy for combating increasing inflation. Of course, which has reached 7.5 percent this month.
Bitcoin and crypto markets have historically moved in lockstep with stock market patterns. However, Morehead said in his Feb. 16 newsletter that bonds, equities. Then, and real estate will bear the brunt of the Fed’s “huge policy U-turn” on interest rate hikes.
Despite the fact that the crypto market has been in decline since late 2021. So, the CEO believes that digital assets will be the “ideal place” to store capital once the Fed’s initiatives take effect:
“I think our markets will decouple soon. Investors are going to think:”
” bonds are going to get crushed as the Fed goes from the only buyer on Earth to seller.”
“Rising rates will make equities and real estate less attractive.”
“So, where does one invest when both stocks and bonds are falling?”
” (Normally they are negatively correlated.) Blockchain is a very legit place to invest in that world,”
So, Pantera CEO adds.
To support his position, CEO Morehead cited a similar statement he made earlier this month during a conference call with investors. That’s, in which the CEO explains that asset classes like gold and cryptocurrency do not immediately equate to interest rates like bonds do.
“Whereas blockchain isn’t a cashflow-oriented thing. It’s like gold. It can behave in a very different”
“way from interest-rate-oriented products. I think when all’s said and done, investors will be given a choice:”
“they have to invest in something, and if rates are rising, blockchain is going to be the most relatively attractive,”
Then, he concludes.
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