Bitcoin Bottom is Already in According to Pantera Capital
According to the latest update from cryptocurrency hedge fund Pantera Capital, Bitcoin ($BTC) is now in its seventh bull cycle, as the head of the firm, Dan Morehead, predicts that this year will see the rebuilding of trust in the space.
This follows Bitcoin’s best January in a decade. Pantera Capital believes that the cryptocurrency bear market ended on November 21 after 376 days, making it the second-largest bear market the space has faced.
Morehead, a former Goldman Sachs bond trader who founded the fund in 2013, states that blockchain assets have hit the bottom and are now in the next bull market cycle, regardless of the interest-rate-sensitive asset classes’ performance.
According to Morehead, this bear market is the only one to have completely erased the previous bull market, giving back 136% of the last rally.
The market is now starting to rise again as it rebuilds trust, with Morehead predicting that 2023 will be a year in which entities follow the rules and enjoy the rewards of doing so after the previous year saw many bad actors skirting the lines of regulations.
Pantera Capital, with over $4 billion in assets under management, believes that centralized exchanges will recover on a jurisdiction-by-jurisdiction level, and decentralized finance should not be overlooked as centralized finance platforms rebuild trust. The firm’s portfolio includes 1Inch, Coinbase, BitG, Bitstamp, Brave, Ripple, and Polkadot.