Dan Morehead, CEO of Pantera Capital, a hedge fund focused on digital currencies, has said Bitcoin (EXANTE: Bitcoin) may drop 50% before pushing to new highs.
“Bitcoin could be down 50 percent next week ... where it was a month ago," Morehead, who purchased Bitcoin at $72, told CNBC.
Morehead believes that the cryptocurrency asset class is just beginning development and will continue to grow.
"For the big blockchains like Bitcoin, Ethereum and Ripple, we're in the first innings of a multidecade thing. And there's going to be some ups and there's going to be some downs, but we're still really early,” he said.
Pantera Capital’s digital currency hedge fund, founded in 2013, is up 60% in the last two months alone, and up more than 12,000% since its creation.