Crypto set to reach “literally billions” of users by 2027: Pantera CEO – crypto briefing | Jewelry Dukan

The central theses

  • Pantera CEO Dan Morehead has predicted that crypto will hit billions of users in the next four to five years.
  • He said crypto prices would rise as adoption based on supply and demand principles increases.
  • He also commented on the current market decline, saying he believes crypto bottomed out during the lender liquidity crunch in June.

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Morehead argued that crypto is in “a secular bull market” and could trade independently of traditional risk assets for years to come.

Pantera CEO maintains bullish crypto stance

Dan Morehead has made it clear that the ongoing crypto winter doesn’t worry him.

in the a Wednesday interview With CNBC‘s Squawk Box, the founder and CEO of Pantera, discussed the current state of the digital assets space and reiterated his confidence in the future of blockchain despite the market’s sharp decline from all-time highs.

Morehead said that he believes crypto is in “a secular bull market” that has entered a downtrend with other risky assets in recent months, and predicted that the emerging asset class would lose its close correlation with other markets going forward could. “I can easily imagine a world a few years from now where risky assets might still be struggling themselves, but blockchain has returned to all-time highs,” he said, addressing the unfavorable macro conditions that have impacted stocks and crypto this year .

Morehead argued that crypto’s value would rise as adoption increases, making a lofty prediction of how the asset class could gain traction over the next few years. “Hundreds of millions of people are using blockchain today, I think in four or five years it will be literally billions of people,” he said.

Bitcoin has grown to around 200 million users worldwide since it started as a niche cypherpunk movement in 2009, while the broader crypto market hit nearly 300 million users earlier in the year, according to Crypto.com Data. However, the sector has suffered from a months-long bear market, raising doubts about the possibility of rapid growth in the near term.

Retail interest is waning

When crypto experiences bull rallies, like the one that saw the market surpass $3 trillion in 2021, it tends to attract hordes of new users. But many of them exit the space when they experience downward price swings at the end of the market cycle, slowing adoption. Bitcoin today is trading over 70% below its November 2021 peak and mainstream interest in the technology has fallen sharply amid deteriorating macro conditions and weak market sentiment.

According to Google trends worldwide search “Crypto” and “Bitcoin” have hit pre-2021 lows for the past few weeks. Google search trends are a popular metric for assessing mainstream crypto interest; Searches for “bitcoin” peaked during retail-driven mania periods in December 2017 and May 2021.

Commenting on the ongoing crypto winter, Morehead said he thinks “the worst is pretty much over.” He pointed to the liquidity crisis that ravaged space in June, leading to a string of bankruptcies at centralized crypto lenders like Celsius and Voyager Digital. “If you have a market that goes down 75, 80%, [if] When you add leverage, it gets tough,” he said, arguing that June 2022 marked a bottom for the current market cycle.

Morehead also noted that Bitcoin and Ethereum market cap dominance hit a low of 57% on Tuesday, adding that he thinks there are “hundreds of really interesting projects” that could grow in the future.

While Morehead maintains a bullish outlook, it’s worth noting that his firm, Pantera, is known for investing with long-term time horizons. In the near term, there are many reasons to be more bearish on Bitcoin and the broader space, including market exhaustion, rising inflation and expectations of further rate hikes by the US Federal Reserve, and a lack of potential catalysts for Ethereum’s Sell the News merge event.

Corresponding CoinGecko data, the global cryptocurrency market cap is currently around $950 billion. That’s about 70% less than its peak.

Disclosure: At the time of writing, the author of this article owned ETH and several other cryptocurrencies.

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