Over the past decades, the crypto sector has grown into a thriving industry with over 200 million users. According to Pantera CEO Dan Morehead, billions of people will be using cryptocurrencies by 2027.
Billions of crypto users
The bear market seems to leave Morehead completely cold, and yesterday he expressed in an interview with CNBC his faith in crypto. The crypto prices are said to correlate strongly this year with the prices of traditional currencies risk assets; the valuation of cryptocurrencies falls when the value of traditional risk assets fall, and vice versa. Morehead envisions a scenario in the near future where this may no longer be the case.
“It is quite easy for me to see a situation arising where risk assets have had a very hard time while cryptocurrencies back on all time highs to be.”
Morehead expects the value of cryptocurrencies to grow as blockchain usage increases globally.
“Today, hundreds of millions of people use blockchain technology. I think within 4 or 5 years this will be literally billions of people.” According to Morehead.
Currently little interest in crypto
According to Google Trends, internet interest in cryptocurrencies has hit a new low in recent weeks. Searches for ‘bitcoin’ and ‘crypto’ are as popular now as they were before the bull run.
So-called mainstream interest in crypto is often a good measure of the state of affairs. The bull run 2021 attracted a huge number of new users to crypto. However, many of these new users lose interest when prices fall. In times of dire macroeconomic conditions, the bitcoin price is 70% below its November 2021 peak and the mainstream no interest in crypto.
According to Morehead, the low point of the current bear market already behind. He referred to the liquidity crisis within the crypto sector in June that led to the bankruptcy of Celsius and Voyager, among others.
Morehead’s optimism in the crypto sector is hopeful, but there is plenty of reason for pessimism. High global inflation and further expected interest rate hikes are anything but a rosy outlook.