The global economy and exchanges have been hit hard by the Coronavirus outbreak. Institutions such as Deutsche Bank predict that the economic effects of the coronavirus will be felt a few more and may lead to a liquidity crisis over time.
Dan Morehead, CEO of Pantera Capital and well-known in the cryptocurrency industry, thinks that this outbreak could lead to a global crisis. Morehead thinks this crisis will benefit Bitcoin.
There is nothing like it
Recently, many economists have started to say that the current economic developments are unmatched. Some economists predict that the coronavirus outbreak could lead to a major economic crisis. However, this crisis is neither similar to the Great Depression in 1929 nor the financial crisis in 2008.
A similar comment was recently made by Ben Bernanke, a former president of the Federal Reserve (Fed). Comparing the coronavirus crisis with past crises, Bernanke emphasized that this time the crisis is much different than the others.
Hedge fund manager Dan Morehead also thinks this time the crisis is different than in the past. According to the news of Cointelegraph, he summarizes the economic effects of the coronavirus outbreak as follows:
“For 35 years, I traded in such moments of global crisis. This time the crisis is unlike any other. The coronavirus outbreak will have a greater economic impact than any recent crisis. ”
It Will Help Bitcoin
Dan Morehead thinks the global economy may be in a downtrend over the next few months. However, he believes that this process can be especially useful for Bitcoin.
Morehead thinks that people will turn to Bitcoin in the coming months, and more people will invest in Bitcoin over time. According to Morehead, in the light of all these developments, we can see that the price of Bitcoin exceeded 20 thousand dollars at the end of the year:
“Bitcoin price may set a new record in the next 12 months. This is of course not something that will happen overnight. According to my estimates, institutional investors will try to solve their problems and recover their portfolios for 2-3 months. Looking for new opportunities, cryptocurrencies etc. for 3-6 months after that. they will start looking. From this point on, these markets will begin to grow. ”