Dan Morehead - Pantera CEO describes crypto as a "Fantastic Hedge" against the bond market bubble.

Pantera CEO - Dan Morehead believes that the bitcoin market is “way too big to be manipulated.”

Dan Morehead, CEO of Pantera Capital, recently stated that investing in cryptocurrency is a "fantastic hedge" against a bond market that once the US Federal Reserve stops its asset purchases will cause the bond market bubble to  eventually burst.

“Bonds investors are going to get absolutely destroyed when the Fed stops manipulating the bond market,” Morehead warned before explaining that “if real rates were no longer manipulated,” they would return to their 50-year average.

According to Morehead “bond market prices would fall 30 percentage points, which is "against the maximum possible upside of 13. What if they only go halfway back to normal? USD 6 trillion of market cap evaporating!"

The CEO added:

“Buying crypto with only USD 3 trillion market cap seems like a fantastic hedge.”

While Morehead stated that bonds are in a bubble, he also said equities were overvalued.“may sound overpriced,” although in reality they are “inexpensive relative to the bubble that is the bond market.”

He went on to note a Goldman Sachs research note from November that stated, in part, that stock valuations relative to US Treasury yields were unsustainable “would still register as attractive compared with historical averages.”

Further, Morehead, a long-time macro investor who is also the chairman of the crypto exchange Bitstamp, suggested that governments around the world should “stop obsessing about Bitcoin,” and instead take a closer look at their own actions.

Morehead added that bitcoin is “way too big to be manipulated,” while reminding readers that the digital asset is traded on a large number of exchanges and markets in numerous countries around the globe.

Finally, Morehead maintained that inflation is real and that it is “everywhere,” while citing Joseph Carson, former chief economist at asset manager AllianceBernstein, as saying that inflation is “much worse than official statistics show” if older methods of measuring inflation are used.

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