While many bitcoin investors and enthusiasts have been showing their disappointment over the bitcoin price which has been taking forever to rally, there are some few bitcoin investors on the other side, who see this as a good opportunity to buy them before the bitcoin price rallies.
That’s the claim that Dan Morehead, founder of Pantera Capital Management has made. Morehead told that CNBC’s Fast Money on Thursday, that cryptocurrencies have declined about 65 percent from their highs this year, so it couldn’t be a better time to buy them.
“All cryptocurrencies are very cheap right now. It’s much cheaper to buy now and participate in the rally as it goes.”
Bitcoin, which still stands out as the number one cryptocurrency, reached highs of $19,500 last December, only to dip below $6,000 in February. On Thursday evening at 5:30 p.m. ET, bitcoin was priced around $7,500.
Due to the ever fluctuating prices of cryptocurrencies, they have been subject to stringent regulations and even ban in several nations. Morehead believes, this might work in investors’ favor.
“Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact. Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we’re hearing about come online, they’ll already have their positions.”
His tip for investors: Buy a currency once it breaks its 230-day moving average, wait a year and sell.
“Without even thinking about it. You make an average of 239 percent.”
He said this kind of strategy can be seen as an example of huge success of bitcoin, a coin in which it “happened about five times in the last six years,” he said.
“That’s the essence of this trade: It rarely ever gets cheap to its long-term average. So today is a good day to be buying.”
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