Pantera Capital Founder and CEO Dan Morehead has predicted Bitcoin will "come of historic period" during the 2020 financial crisis and may pinnacle its all fourth dimension loftier price inside 12 months.

The San Francisco-based blockchain and cryptocurrency hedge fund founder made the comments in a March 25 letter to investors examining the fallout from the COVID-19 financial crunch.

Morehead offered a grim prediction for the economy and said he believes the global economy is near to enter its beginning ever flow of negative growth. "I now believe that the recession is likely to be larger than whatever mail service-War recession," he said well-nigh the U.S. economy.

"I have spent 35 years trading global macro disruptions. This is like no other. This will certainly cease the longest global expansion on record. It is likely to have a larger global economic bear on than any downturn in recent retention."

Bitcoin will recover in stages

Morehead noted that Bitcoin has been correlated with the sharemarket in this and other market place downturns. However, he said the cryptocurrency tended to exist less correlated after the first month or two of stock market place price falls.

"We now believe that the short-term high correlation with full general markets is over and that crypto will trade independently."

He likened Bitcoin to bonds, which tend to shine in times of market turmoil, and predicted BTC will recover in stages earlier reaching a new all-time high:

"The cost of Bitcoin may set up a new tape in the next twelve months. Information technology'due south not going to happen overnight. My best guess is that information technology will take institutional investors ii-3 months to triage their current portfolio bug. Some other iii-6 months to research new opportunities similar distressed debt, special situations, crypto, etc. Then, equally they brainstorm making allocations, those markets volition really begin to rise."

The Pantera Upper-case letter founder did not predict a cost, nevertheless he has previously said that BTC has the potential to achieve $356,000 within a couple years.

Investors look to Pantera during a volatile market place

Equally the first Bitcoin fund in the Usa, Pantera was quick to see the potential in cryptocurrency and raised $13 million for its debut offering in 2013, and $25 million for its second.

While the CEO admits nothing is certain, he believes night times see a flight of capital to quality, and that Bitcoin is well placed to do good as the market leader for 11 years.

"Bitcoin was born in a financial crisis. It will come of age in this one."