Dan Morehead, founder and CEO of Pantera Capital, believes that the cryptocurrency market is undervalued in comparison to the artificial intelligence sector, which has 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 witnessed.
He stated that although AI is crucial for long-term growth, its current valuation appears to be fully priced. In contrast, he described the crypto market as 'incredibly cheap.' Pantera's data supports this view, showing that a leading AI company index is trading 33% above its four-year trend, while bitcoin has fallen 43% below its historical trajectory. Morehead attributed this disparity to the fact that most institutions have yet to invest in crypto, leaving room for future demand. He also highlighted the structural cycles in crypto markets, citing bitcoin's supply schedule as a factor that could influence market trends.
Morehead tied crypto's appeal to broader macro trends, including its potential as a hedge against currency devaluation. He also noted that AI and blockchain technologies are converging, with Pantera investing in projects at the intersection of these sectors. According to Morehead, the eventual rebalancing of markets will draw attention back to underpriced digital assets.