– Bitcoin is predicted to deliver over 100% annual price gains, according to Dan Morehead, CEO of hedge fund Pantera Capital.
– Morehead warns that risk assets, particularly stocks, are at risk of a serious contraction due to being “massively overvalued.”
– He points out that equities are overvalued because the price-to-earnings ratio is at the same level as when interest rates were falling, despite rates now being much higher and rising.
– Morehead predicts that equities could be 23% lower than their current levels based on historical equity risk premiums.
– Despite concerns about stocks, Morehead is optimistic about Bitcoin’s future, stating that it has a 14-year trend growth of 145% per year and will continue to double in value annually.
– However, some analysts warn that Bitcoin may experience a major retracement before the 2024 block subsidy halving, potentially around March next year.
– Bitcoin has managed to decouple from its positive correlation to stocks, which is seen as a bullish signal for the cryptocurrency.
– This article does not provide investment advice and readers should conduct their own research before making any investment decisions.