- Pantera Capital thinks the worst could also be over for the blockchain and cryptocurrency business.
- The hedge fund believes the absence of catastrophic occasions is constructive for crypto.
- In line with Pantera, regulatory readability and Bitcoin halving may spur the following bull market.
Pantera Capital Administration, an American hedge fund targeted on digital property, lately revealed an open letter addressing the state of the blockchain and crypto business. Within the letter titled “The Absence of Dangerous Issues,” Pantera famous that the worst could also be over for the blockchain and cryptocurrency business.
Citing what many contemplate essentially the most catastrophic occasions in blockchain’s historical past, the hedge fund famous that the absence of these occasions is a constructive improvement for the business. It additionally highlighted eradicating some laws as one other plus for blockchain and cryptocurrency.
Starting with the early challenges of crypto, cryptocurrency’s catastrophic occasions recognized by Pantera embody the Mt. Gox case of 2013, the BitFinex hack in 2016, Jamie Dimon and Larry Fink’s adverse Bitcoin feedback of 2017, and the 2018 Bitcoin ETF rejections moreover the crackdown on ICOs.
Pantera additionally highlighted Ripple’s lawsuit, which started in 2020, as a big occasion that would have harm the crypto business. The agency labeled 2022 as cryptocurrency’s worst 12 months, highlighting occasions just like the Terra Luna crash, Celsius’ challenges, the Three Arrows Capital debacle, and FTX’s chapter as occasions that would have harm the business.
Having overcome these challenges, Pantera believes the coast could also be clear for the crypto business to proceed in constructive evolution. The agency’s open letter cited some occasions prior to now 12 months as profitable components that would set off the following section of the business’s progress.
In line with Pantera, high-profile instances comparable to Ripple’s native token XRP dominated as not a safety stand out as positive aspects for the crypto business. The letter additionally highlighted Grayscale’s win of their lawsuit in opposition to the SEC relating to their Bitcoin ETF software, noting it as a step in the direction of reaching regulatory readability.
With a watch on unfolding occasions, Pantera famous that institutional adoption seems to be accelerating after the spot bitcoin ETF launch in January. The hedge fund predicts that with the halving anticipated to happen in late April 2024, the convergence of those constructive issues will present sturdy tailwinds for the following bull market.
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