Dan Morehead, founder and CEO of Pantera Capital, believes that the cryptocurrency market is undervalued compared to artificial intelligence stocks, which have experienced a significant surge. Speaking at a New York event, Morehead noted that the divergence between the two sectors is one of the largest he has seen, with AI stocks appearing overpriced and crypto being 'incredibly cheap'.
Pantera's internal data supports this view, showing that an AI company index is 33% above its four-year trend, while bitcoin has fallen 43% below its historical trajectory. Morehead attributes this gap to investor enthusiasm for AI, with large funding rounds and rising public market valuations, while crypto struggles to regain momentum despite adoption and regulatory progress.
He notes that most institutions lack exposure to crypto, leaving room for future demand. In contrast, AI has seen rapid investor interest, pricing in expected growth. Morehead sees an opportunity for those taking a longer view and points to structural cycles in crypto markets, including the four-year cycle tied to bitcoin's supply schedule.
He also highlights crypto's appeal as a hedge against currency debasement, driven by inflation and monetary expansion. Morehead believes that AI and blockchain technologies will converge, with Pantera investing in projects at this intersection, and argues that crypto is a relative value trade that will eventually draw attention back to underpriced digital assets.