Bitcoins Negative Year-Over-Year Returns Expected to Change, Says Pantera Capital Founder

Fed Chairman Jerome Powell to Provide Insight on Future Direction of U.S. Central Bank Policy

Bitcoin experienced its longest-ever period of negative year-over-year returns this summer, but according to Dan Morehead, founder of crypto investment firm Pantera Capital, this trend will not last. Morehead argues that the market can only remain down for so long, and he believes that the worst is over for bitcoin. Despite the recent market downturn, bitcoin is up over 20% year-over-year. Morehead highlights positive catalysts for the market, such as the positive court ruling on the XRP token for Ripple Labs and endorsements from asset managers like BlackRock and Fidelity. Additionally, he believes that the upcoming halving in April 2024 will drive the price of bitcoin up. Morehead’s models suggest that bitcoin will reach $35,500 by the halving and nearly $150,000 by late 2025.

Key Points:
– Bitcoin completed its longest period of negative year-over-year returns this summer.
– Bitcoin is currently up over 20% year-over-year.
– Positive catalysts for the market include the XRP court ruling and endorsements from asset managers.
– The upcoming halving in April 2024 is expected to drive the price of bitcoin up.
– Morehead’s models suggest bitcoin will reach $35,500 by the halving and nearly $150,000 by late 2025.

Bitcoin rebounded to the $26,000 level on Wednesday as interest rates plunged due to weak economic data in Europe. U.S. stock indexes also saw gains, with the Nasdaq Composite leading the way with a 1.5% increase. The upcoming highlight of the week is Federal Reserve Chairman Jerome Powell’s keynote speech at the Kansas City Fed’s Jackson Hole Symposium. While past speeches at the symposium have sometimes led to important policy announcements, it is expected that Powell will deliver a status quo message, focusing on containing inflation and making data-dependent decisions regarding monetary policy tightening.

Hot Take: Despite bitcoin’s recent period of negative returns, there are several positive catalysts on the horizon that could drive the price of the cryptocurrency up. With the upcoming halving and endorsements from asset managers, there is potential for bitcoin to reach new heights in the coming years. Additionally, the market rebound on Wednesday and the anticipation of Powell’s speech indicate that the cryptocurrency market is resilient and closely connected to broader economic trends.