Bitcoin Has Yet To Price In 'Very Positive Developments,' Pantera Capital's Dan Morehead Says

Dan Morehead, Founder and Managing Partner of Pantera Capital, believes crypto markets have not yet fully absorbed a wave of major political and regulatory developments that favor the industry.

What Happened: In an X post on Friday, Morehead pointed to the muted market reaction to what he described as an exceptionally bullish environment for digital assets.

"If a few days before the U.S. Presidential election – with Bitcoin BTC/USD at $69,000 – a sorcerer showed you a crystal ball", revealing pro-crypto outcomes across the executive and legislative branches, "you'd bet bitcoin would be up way more than 24%," Morehead wrote.

He cited a number of developments since the November election: a pro-crypto president entering office, a Republican-controlled Congress, the removal of dozens of anti-crypto lawmakers and several executive orders establishing a U.S. strategic reserve of Bitcoin and other digital assets.

Additionally, the White House has dropped many of the SEC's enforcement actions targeting the blockchain sector and is actively engaging the industry through a dedicated summit.

Also Read: Gold Overtaking Bitcoin In Inflation Hedge Strategy, JPMorgan Says

Why It Matters: Despite this rapid shift in the policy landscape, Morehead pointed out that Bitcoin's price remains within a relatively narrow range.

"The way I think of it, the markets have barely moved relative to trend," he said, noting that the Pantera Bitcoin Fund's long-term average annual return stands at 83%, a pace that could explain much of Bitcoin's recent gains without accounting for the current political tailwinds.

"Seems to me that the crypto markets have yet to price in the very positive developments," Morehead concluded.

Pantera Capital, one of the earliest institutional investors in crypto, has historically emphasized the importance of macro conditions and regulatory clarity in driving digital asset adoption.

Morehead's comments suggest he sees current market valuations as lagging behind the fundamental shift in Washington’s stance toward the industry.

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