A significant decrease in risk assets overall is anticipated, despite Bitcoin posting a classic "Uptober," according to projections.

Will "reassert" itself to produce yearly BTC price gains of more than 100%, according to a leading proponent of the cryptocurrency market.

The CEO of hedge fund Pantera Capital, Dan Morehead, forecasted further growth in cryptocurrencies in an interview with CNBC that aired on October 5 and was published on October 31.

Morehead: "We could easily see" the collapse of 40% in equities

With a 29% gain at the end of October, Bitcoin experienced its second-best month of 2023 and reached 18-month highs.

Though Morehead and others at Pantera are keeping an eye on macroeconomic developments, they are more worried about another risky asset class, which he refers to as "massively overvalued" stocks.

The P/E is at the same level as it was during the rate decline, but rates are much higher and rising now, which makes equities overvalued," he stated to CNBC.

Equities should be 23% lower today if you took the 50-year average equity risk premium with a 5.00% 10-year note."
With interest rates at their highest point in more than two decades, Morehead alluded to the shifting macroeconomic landscape in the United States.

I'm not suggesting a drop of -43% will happen overnight, but we need to remember that there have been two 13-year equities bear markets: the 2000s and the 1970s and 1980s," he said.
Equities should be 23% lower today if you took the 50-year average equity risk premium with a 5.00% 10-year note."
With interest rates at their highest point in more than two decades, Morehead alluded to the shifting macroeconomic landscape in the United States.

Im not suggesting a drop of -43% will happen overnight, but we need to remember that there have been two 13-year equities bear markets: the 2000s and the 1970s and 1980s," he said.

Even with the dire forecast, Morehead was supportive of Bitcoin and Ethereum ETH, the biggest altcoin.

Forecasting that the former will more than double annually, consistent with typical performance thus far.

He said, "Bitcoin has a 14-year trend growth of 145% a year."

That is my general prediction: it will more than double annually and re-establish its trend."

Bitcoin price could crash before halving.
The high points in the price of Bitcoin might only be followed by another round of suffering for hodlers.

Some fear that there may be a significant retreat before the 2024 block subsidy halving.

The co-founder of the trading package DecenTrader, Filbfilb, believes that the timing will probably centre on the month prior to the halving, or around March of next year.

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In the event that this is the consequence of a stock market decline, the situation remains unclear.

Despite this, as Cointelegraph noted, Bitcoin has been able to break out from its positive connection with stocks,

Which last week was described as a classic early bull market indication by research firm Santiment.

DISCLAIMER: We don't provide any investment advice.