100%+ BTC price gains? Bitcoin faces ‘massively overvalued’ stocks


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Bitcoin (BTC) will “reassert” itself to ship over 100% annual BTC worth beneficial properties, says one of many crypto business’s main proponents.

In an interview with CNBC airing Oct. 5 and published Oct. 31, Dan Morehead, CEO of hedge fund Pantera Capital, predicted continued crypto growth.

Morehead: “We might simply see” 40% shares meltdown

Bitcoin closed October up 29%, seeing its second best month of 2023 and returning to 18-month highs within the course of.

Eyeing macroeconomic circumstances, nevertheless, Pantera’s Morehead and others are involved about one other threat asset class — what he describes as “massively overvalued” shares.

“Equities are overvalued as a result of the P/E is similar stage it was when charges have been falling, however now charges are a lot larger and rising,” he informed CNBC.

“If you happen to took the 50-year common fairness threat premium with a 5.00% 10-year notice, equities needs to be 23% decrease than immediately.”

Morehead referred to altering macro circumstances within the U.S., with rates of interest at their highest in over twenty years.

“I’m not saying -43% goes to occur in a single day, however now we have to remember there have been two 13-year durations the place equities have been flat – within the 2000s and within the 70’s, 80’s,” he continued on the subject.

“We might simply see that once more.”

Regardless of the grim prognosis, Morehead was complimentary of each Bitcoin and largest altcoin Ethereum (ETH), predicting the previous to greater than double yearly, according to common efficiency so far.

“Bitcoin has a 14-year development development of 145% a yr,” he said.

“That’s my generic forecast – it’ll re-assert its development and can greater than double yearly.”

Bitcoin, Ethereum quarterly returns (screenshot). Supply: CoinGlass

BTC worth dangers pre-halving collapse

The nice instances for BTC worth efficiency could solely comply with a fresh bout of pain for hodlers.

Associated: Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in

Previous to the 2024 block subsidy halving, some are involved {that a} main retracement might enter.

For Filbfilb, co-founder of buying and selling suite DecenTrader, the timing will seemingly give attention to a month earlier than the halving — round March subsequent yr.

Ought to this come on account of an equities comedown, the state of affairs is just not clear lower.

As Cointelegraph reported, Bitcoin has nonetheless managed to ditch its optimistic correlation to shares, one thing which analysis agency Santiment this week referred to as a basic early bull market sign.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.