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Bitcoin may be a scam for someone but not former Treasury Secretary Steven Mnuchin and Pantera Capital CEO

Bitcoin price has seen almost two months of price movement in a tight range after hitting the $30,000. Despite rising fundamentals and ongoing adoption narratives, BTC price action has failed to re-establish a bullish trend. However, there are still many opinions in favor of BTC despite the state of eight weeks of sideways.

In it, Pantera Capital CEO Dan Morehead showed eight-year stats for Bitcoin fund-company capital inflows. And Trump ex-Treasury Secretary Mnuchin said it’s fine to buy Bitcoin as a gold substitute.

Steven Mnuchin confirmed that his perspective on Bitcoin had evolved

Speaking to CNBC, Steven Mnuchin confirmed that his stance on Bitcoin has evolved, in stark contrast to his previous hostile stance.

“I think my view has evolved a little bit, but it is pretty consistent”, he said. “The first part of it is I think the underlying technology of blockchain is really incredible and has lots of different things, particularly in fintech and finance. I think as it relates to Bitcoin — if people want to buy Bitcoin as a substitute, no different from buying gold or some other asset — it’s fine.”

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Gold (blue) vs. BTC/USD (orange) performance since 2020 | Source: TradingView

Even so, Mnuchin said that he himself still does not want Bitcoin in his portfolio but emphasized that he is not against others accepting it.

Meanwhile, current US President Joe Biden has yet to offer much to Bitcoin supporters. Finance Secretary Janet Yellen has voiced concerns about cryptocurrencies more widely, and senior politicians are arguing over how to address it.

According to data, while volatility has been low, it is not extremely minimal. Observing the one-month realized volatility chart for BTC, it can be seen that while it has been trending down, it was still maintaining an average above the historically low levels of late 2020.

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Source: Ecoinometrics

Pantera Capital CEO showed a procyclical trend of money inflows into a BTC fund

In an interview with Business Insider, Morehead shared a relevant bar chart that also showed the company’s Bitcoin fund inflows over the past eight years.

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Pantera Capital CEO Dan Morehead

Looking at the chart, you can see the procyclical trend of capital inflows and outflows in Bitcoin. Human nature is cyclical. Just like fashion or anything else, life is procyclical, including investments. This has to do with the fact that most investors, in general, tend to follow the trend: they always buy high and sell low.

bitcoin-may-be-a-scam-for-someone-but-not-former-treasury-secretary-steven-mnuchin

Morehead is particularly convinced of the huge potential of cryptocurrencies. In addition to Bitcoin and Ethereum, other cryptocurrencies also have a big opportunity. Besides, Morehead also thinks that Bitcoin is going against every major market and also expressed his opinion on the blockchain. According to him, blockchain is disrupting the status quo of the financial services industry, which has remained untouched by the Internet and software.

According to the head of Pantera Capital, it is this element of opportunity that has pushed big banks and companies like JPMorgan, Morgan Stanley, PayPal, and Square to integrate cryptocurrencies.

In the past, gold was the most hoarded asset class of all. However, the trend has now turned to Bitcoin. It has had a compound annual growth rate of 233% over the past 11 years and a correlation of just 0.08.

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