Early Bitcoin Investor Says Bitcoin Could Drop 50% Before Surging Again

Bitcoin has been one of the most trending topics in 2017 alone – and there is a big reason for that which is the 6000% growth of the virtual currency on the market. From January to December, Bitcoin has increased in value over 16 times. However, recent activity shows that Bitcoin is slightly falling and not continuing its massive growth.

This has led many to believe that there is something behind the ‘paused increase’. Especially after a major surge that occurred at the beginning of this month. Even though most of the Bitcoin traders have profited this year, the current price of Bitcoin which is sitting at $16,861 is way lower than the all-time high of $20,000.

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One early Bitcoin investor named Dan Morehead and the CEO of Pantera Capital, a hedge fund focused on digital currencies, has an explanation for this. As he told CNBC, Bitcoin may drop 50% before pushing to new heights. Morehead purchased Bitcoin when the currency was at $72.

As Morehead says, “[Bitcoin could be] down 50 percent next week … where it was a month ago, but in a year, it’ll be much higher than it is today.”

According to him, the cryptocurrency asset class is in early development and will continue to grow. Morehead continued, “For the big Blockchains like Bitcoin, Ethereum and Ripple, we’re in the first innings of a multi-decade thing. And there’s going to be some ups and there’s going to be some downs, but we’re still really early.”

Pantera Capital is a hedge fund that was founded in 2013 and managed by Morehead himself, profiting 60% in the two months alone and more than 12,000% since its creation. And while no one could know how the price of Bitcoin is going to act in the future, one thing is certain – we are witnessing a major growth of cryptocurrencies nowadays.