The CEO has stated a few reasons why it is a good time to invest in cryptocurrency as the market recovers back from the recent crash.
CEO of Pantera, Dan Morehead, has said that the recovery of the crypto industry shows that the ‘panic’ about the market has now slowed down and that it is a good time to invest in cryptocurrencies. Dan stated in a newsletter published on the 14th of June that the market is currently below trend, so it is a very good time to get involved in any cryptocurrency investments. Charts based on the current trade of Bitcoin support this claim by dan, because Bitcoin is very cheap compared to its history of price trends. Dan stated that Bitcoin had become this cheap, fairly similar to its 11-Year-old run. Dan also said that the returns from last years are not to be connected with the value of Bitcoin.
Market Drop Events
Dan Continued to explain the reasons that contributed to the huge market drop that happened recently, causing chaos in the crypto industry. He said the Crackdown of Bitcoin in China is probably one of the biggest reasons that caused the huge drop, with a few other factors also becoming a huge problem for the crypto king. But China’s crackdown isn’t something new for Bitcoin, as it has happened multiple times in many years. Bitcoin miners in Beijing have also faced crackdowns because of governments concern over high energy consumption and environmental impact.
Another huge reason that Dan stated was the Tax Day in the United States which caused distress in many markets and forced investors to liquidate their valuable holdings in order to pay for their tax bills.
The next reason was the announcement from Elon Musk about tesla ditching Bitcoin payments. Musk said that Tesla plans to sell some of its Bitcoin holdings, but Tesla is not completely removing Bitcoin. That day there was a huge tweet battle that happened, followed by a staggering 43% drop in the market price of an asset, dropping it from the $60,000 range to a low of $30,000 that caused a lot of trouble to many traders. As of now, the market has been showing recovery and is hoped to rise once again.