Pantera Capital: Invest in Crypto With a Multi-Year Outlook

Bitcoin has fallen about 53% from its all-time highs of about $63,000 in April. While the cryptocurrency remains low, many market participants aren’t worried.

article-image

Dan Morehead, founder, CEO and Co-CIO of Pantera Capital

share

key takeaways

  • People investing in cryptocurrencies and tokens should have a multi-year perspective, according to Pantera Capital CEO Dan Morehead.
  • Long term, the company projects the terminal value of bitcoin as high as $700,000 in five to 10 years if 3.5 billion people on earth with a smartphone partake in using the digital coin.

Bitcoin has its manic bubbles and drawdowns, but when looking from a bird’s eye view, it has a steady exponential growth rate, Pantera Capital CEO Dan Morehead during a conference call on Tuesday. 

That same morning, bitcoin prices retreated below $30,000 for the first time in almost a month.

In fact, the digital coin has fallen about 53% from its all-time highs of about $63,000 in April.

In March, Morehead said bitcoin was on track to hit $115,000 by August 2021 while skeptics like Ray Dalio predicted a crash.

Today, the cryptocurrency is well below that $115,000 prediction, but still many market participants aren’t worried, including Morehead.

“Things change quickly in this space. I think that the reasons the markets have fallen are transitory,” he said. 

Pantera Capital is an asset management firm with an estimated $3.1 billion in assets under management and currently offers a range of investment funds focused on cryptocurrencies and tokens. Its funds provide investors with exposure to the space, ranging from illiquid venture capital assets like early-stage tokens and multi-stage venture capital equity, to more liquid venture capital assets like bitcoin and other cryptocurrencies. 

In the latest letter to investors, he said a convergence of elements has caused the blockchain markets to drop sharply but “the volatility has presented a very compelling opportunity,” Blockworks previously reported

On average, bitcoin has tripped every year since its inception and is at a 233% compound annual growth rate, according to Pantera Capital. 

Pantera Capital chart showing bitcoin growth
Chart showing bitcoin pricing growth over time; Source: Pantera Capital

Right now, bitcoin is trading 46% below its 11-year exponential trend, which is significant because only 15% of time in the history of bitcoin has it been this cheap, Morehead said. 

“We like to remind people investing in tokens that they should have a multi-year perspective, and we like four-year returns because it takes out crazy wiggles from bubbles and bursts,” he said.

According to Morehead, supply and demand drives the price of bitcoin, and over time more people enter the market which brings in higher demand and less supply.

Pantera Capital chart showing potential terminal value of bitcoin
Pantera Capital chart showing potential terminal value of bitcoin; Source: Pantera Capital

In December 2020, there were about 100 million people using bitcoin, the company said. 

Although we’re in a “bear market right now, where everyone’s fearing for the worst,” there is a potential of 1 billion people using bitcoin by 2022, which could spike the price of bitcoin up to levels as high as $200,000, Morehead said. 

With a cryptocurrency market size of $1.5 trillion, the industry is still in the early stages of adoption, Pantera noted while projecting the terminal value of bitcoin as high as $700,000 in five to 10 years if 3.5 billion people on earth with a smartphone partake in using the digital coin. 

Get more breaking news and industry insights directly into your inbox. Subscribe to the Blockworks Daily newsletter for free.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates.png

Research

Maple Finance has successfully navigated significant market challenges through its strategic pivot to secured lending (Maple v2) and the launch of its Syrup product. Syrup has become a primary growth driver, delivering sustainable, outperforming stablecoin yields and rapidly increasing TVL. The upcoming custody-first Bitcoin staking product (istBTC) presents another significant avenue for expansion. Crucially, Maple has achieved operational profitability, a key inflection point that, combined with a fully vested token and active buyback mechanism, strengthens its investment case. While valuation metrics suggest potential undervaluation relative to peers and growth, the primary forward-looking risk identified is the long-term sustainability of its current high-take-rate collateral staking revenue model.

article-image

In 2014, Microsoft virus scanners were detecting viruses in Bitcoin software

article-image

Ledn’s Mauricio Di Bartolomeo explained how this cycle’s been different for the lender

article-image

The shorts looking for funding range from charming animated series to gritty live-action dramas

article-image

Money, it turns out, is emergent, like consciousness

article-image

Bridge flows churn in both directions as risk appetite returns