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New Rally Incoming, Ethereum And Altcoins Set To Outperform Says Crypto Hedge Fund CEO

Dan Morehead, CEO of Pantera Capital, believes that the crypto market has reached the bottom of the cycle and is about to begin recovering.

According to the crypto hedge fund executive in a recent interview with Real Vision CEO Raoul Pal, his company was “heavy” on Bitcoin (BTC) in May, June, and July because the leading cryptocurrency asset drops less when the market is under pressure.

He now believes that a different strategy is required.

“Bitcoin’s kind of like the treasury equivalent of our space, and everything is kind of high beta to that. In times of stress, Bitcoin does go down less than the micro-caps or whatever you want to call altcoins… I actually think we’re past the bottom. If we’re in, at a minimum, a consolidation level, and potentially the new rally – which I actually think we’re in – then it does pay to be out that risk curve, to be in Ethereum, DeFi (decentralized finance), a bunch of other things. And so we’ve now taken our Bitcoin exposure way down, and we’re back in all the other sectors that can perform well if we’re in a bull market. Obviously, if we’re wrong and we have another leg down, we’re going to be wishing we were all in Bitcoin, but the other things have a high beta, basically.” He said.

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An asset with a high beta is one that is thought to be riskier but has a higher potential return.