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Crypto the “best place” to preserve money during the Fed rate hike: Pantera CEO

Dan Morehead, the CEO and founder of leading blockchain venture fund Pantera Capital, stated that digital assets will be the “best place” to store capital after the potential fallout from US Federal Reserve interest rate hikes. Investors in the stock and cryptocurrency markets are currently focused on the Fed’s expected response to increasing inflation, which has reached 7.5 percent this month.

However, the Bitcoin and cryptocurrency markets have often moved in parallel with stock market trends. Morehead argued in his Feb. 16 newsletter that bonds, equities, and real estate will bear the brunt of the Fed’s “massive policy U-turn” in terms of raising interest rates. Despite the crypto market suffering a downturn since late 2021, the CEO suggested that digital assets would be the “best place” to store capital during the fallout of the Fed’s actions.

To support his point, Morehead highlighted a previous comment he made during a conference call with investors earlier this month, in which he said that asset classes such as gold and cryptocurrency do not immediately correspond to interest rates in the same way that bonds do.

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Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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