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After a strong run, Pantera Capital founder and CEO Dan Morehead said cryptocurrency markets may be undervalued as opposed to artificial intelligence stocks.
Talking at an event in New York on Tuesday, Morehead described the divergence as one of the largest he has seen between the two sectors.
He said ‘It’s just my gut feeling that while AI is very important, it’ll be going up big time over the long haul and seems to be pretty full-priced right now.
By contrast, “crypto…is incredibly cheap,” according to Morehead.
Pantera’s internal data supports that view, however. According to Morehead, an Index of leading AI firms “trading 33% over its log trend of the last four years” while bitcoin has been well below its own historical trajectory,” he said. The trend is ‘the biggest divergence we have ever seen in our history,’ he said ‘It’s 43% low. Paraphrast.
The slack comes as investor enthusiasm has been heavily focused on AI, with large funding rounds and rising public market valuations. Despite the wider adoption and regulatory development in the U.S., Crypto, meanwhile, has struggled to revive momentum after growing uptake and regulation of crypto (along with its acronyms) is still struggling for it. s S
It is not a part of the institutions that still don’t receive it, most schools say. Still no exposure,’ Morehead said adding that limited participation leaves room for future demand. he noted that only a minority of large investors now have digital assets, even as the asset class matures.
That dynamism contrasts with AI, where investors have quickly moved up to price in expected growth — that’s what is the difference between those two actors. But for Morehead, the imbalance offers a way for those who would like to take.
Similarly, he pointed to structural cycles in crypto markets. He said ‘The four-year cycle is real, which means bitcoin’s supply schedule. He suggested that if past patterns hold, the market could be in a weaker stage of the near term even as long-term outlook remains positive.
Morehead linked crypto’s appeal to broader macro trends is tied to more than relative valuations, and the popularity of Crypto was also associated with greater-relative economic changes. Digital assets have been described by him as ‘the guard against the currency debasement,’ adding that “inflation and monetary expansion have led investors towards scarce assets”. In fact all those things aren’t moving.’ . He said ‘It’s a massive devaluation of paper money.
Morehead AI and blockchain technologies converge in morehead. The intersection is home to a number of projects that Pantera has invested in, and Morehead said the two sectors are connected. In fact there is no world where AI is important that crypto doesn’t make it,’ he said.
Pantera sees crypto as a relative value trade for now As capital continues to flow into AI, Morehead’s thesis is based on the idea that markets will eventually balance out, drawing attention back to digital assets which remain, in his view, underpriced.
Thanks for reading The AI-crypto disconnect: Why Pantera’s CEO thinks institutions are missing the boat on bitcoin
