CEO Of Pantera Capital Says Cryptocurrencies Are The Only Asset Resistant To Fed Rate Hikes

Pantera Capital founder Dan Morehead said during an interview on the Bankless channel that cryptocurrencies may be the only safe asset class that investors can turn to during the next economic downturn. He added that, faced with chaos in traditional markets, investors from the stock markets may turn to cryptocurrencies. “Now I am optimistic about the crypto industry. I think the reason is that over the past 10 years, every two years, an order of magnitude more investors and projects have come into the industry. Many smart people say that global adoption of cryptocurrencies is coming.

On the other hand, many asset classes are being destroyed and I think they will “sink”. In fact, there is almost nowhere to hide. What remains are cryptocurrencies, which I call a “safe haven”. I think everything but the crypto market will suffer,” Morehead said. According to him, the majority of market participants expect the minimum impact of the Fed's policy on cryptocurrencies. “If we are even partially right, bond yields will rise to 5% or higher, which will obviously drive down bond prices. But it should affect stocks, real estate and everything else that has discounted cash flow,” he said.