Pantera CEO says crypto is best place during fed rate hike
Dan Morehead stated that digital assets will be a better option against the increment in the interest rate by the Federal Reserve.
At present, the Crypto and stock industry is facing a significant correction because of the news of the US federal reserve to increase the rate of Bank funds that people are holding in their bank accounts. In this situation, the majority of the financial institutions are making decisions against such news which already caused huge corrections in the money market in the past.
On 17 February, Dan Morehead, CEO, and founder of blockchain venture fund Pantera Capital stated that digital assets could be the better option against the Fed action to hike interest rates.
“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 from his own point of view, Dan claimed that investors in bonds and stock both will face significant correction, so in that situation, crypto will be a better option.
“So, where does one invest when both stocks and bonds are falling? Blockchain is a very legit place to invest in that world.”
With the latest statement, Dan highlighted his past month statement, in which he said that the gold and digital assets market has no direct relationship with the fed rate hike.
Dan said that crypto is like a gold flow, instead of a cash flow system, so it could show a different behavior against the interest-rate-oriented products. In this way, Dan believes that in a hike rate situation, Digital assets will be a better option.
Pantera CEO also noted that there are chances that people are selling their crypto assets continuously because the US financial tax year is very near.
“Some of crypto selling pressure has been unintended tax positions. Imagine a trader actively buying and selling BTC, ETH, XRP, etc. Great year. Made a ton of money. Kept it all in the markets.”
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