Bitcoin price is down to $7,556 price level which according to Dan Morehead just might be the bottom, BTC will hit. With the crypto market being cheap right now, it is the best time to make the purchase, he advises, while when it breaks through its 200-day moving average, one can make profits on an average of 239 percent.
Crypto market is extremely cheap right now
Bitcoin reached its highest in December 2017 when it came close to touching the $20,000 price level. Right now, Bitcoin price is at $7,556 which is more than 60 percent down to its peak.
“All cryptocurrencies are very cheap right now. It’s much cheaper to buy now and participate in the rally as it goes.”
In his interview to the CNBC, he told that Bitcoin might just be at its bottom of the bear, so it’s a good time to make the purchase right now.
Morehead who is also the co-Chief investment officer didn’t just talk about the right now being the time to make some BTC purchases. He also shared some investment advice.
“When the currency breaks through its 200-day moving average, if you buy that day and sell a year later, you make an average of 239 percent.”
Morehead emphasized that “without even thinking about it” an investor can make such profits. He further illustrated Bitcoin which went through the same scenario. According to him, Bitcoin has gone up about five times its value in the last six years.
“That’s the essence of this trade: It rarely ever gets cheap to its long-term average, So today is a good day to be buying.”
Institutional investment play
Talking about the regulatory part in the cryptocurrency market, Morehead explains:
“Many institutions are essentially buying the rumor [of potential SEC regulations] and selling the fact. Getting invested now so that in three, four, five months when the institutional, quality-regulated custodians that we’re hearing about come online, they’ll already have their positions.”
According to him, the volatile nature of the market just might work in investors favor. Moreover, on how unsettled custody is affecting institutional investment, Morehead clarifies since 2013, his fund has had institutional investors in the crypto market.
On an SEC-approved custodian, Morehead declares that it might just be “the silver Bullet everyone is waiting for.”
Are you going to buy Bitcoin now that the market is cheap? Let us know in the comment section below!