Dan Morehead, CEO of Pantera Capital, believes that the crypto market has reached the bottom of the cycle and is set to begin recovering.
According to the crypto hedge fund executive in a recent interview with Real Vision CEO Raoul Pal, his company was "heavy" on Bitcoin (BTC) in May, June, and July because the leading cryptocurrency asset drops less when the market is under pressure.
But he now feels that a new approach is necessary.
"Everything is kind of high beta to bitcoin, which is kind of like the treasury equivalent of our space. When under pressure, Bitcoin does decline less than micro-caps or other cryptocurrencies, as appropriate.
In fact, I believe that the worst is behind us. It does pay to be outside of that risk curve and to be invested in Ethereum, DeFi (decentralized finance), and a number of other things if we are at least at a consolidation level and possibly the beginning of a new rally, which I truly believe we are. As a result, we have significantly reduced our exposure to Bitcoin and have returned to all the other industries that can perform well in a bull market.
The other things basically have a high beta, but obviously, if we're incorrect and we have another leg down, we're going to wish we were all in Bitcoin.
A high-beta asset is one that is thought to be riskier yet has a larger potential return.
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