Pantera Capital Founder predicts a crypto market rally after the crypto winter, while BlackRock’s application for a Bitcoin ETF fuels positive sentiments.
Dan Morehead, the visionary behind Pantera Capital, has made a compelling prediction about the imminent rise of the cryptocurrency market. As the founder and Managing Partner of Pantera Capital, he expresses a positive outlook for the future performance of the broader digital currency ecosystem. Through his official Twitter account, Dan reflects on the events that triggered the crypto winter, specifically the downfall of Terra (LUNA), and highlights the imminent turnaround that lies ahead.
Reflecting On The Genesis Of The Crypto Winter
Approximately a year ago, the industry witnessed a significant event when TerraUSD (UST), the pioneering algorithmic stablecoin, experienced a detachment from its peg due to what was then labeled as an attack by unidentified actors. This unforeseen incident led to an extensive correlation between UST and Terra (LUNA), resulting in a staggering 99.9% loss in the digital currency’s value.
The repercussions of this event reverberated throughout the crypto venture capital firms and hedge funds, which held substantial exposure to both tokens and their parent company, Terraform Labs. Notable entities such as Three Arrows Capital (3AC), Celsius Network, and Voyager Digital were among the early casualties of this detrimental situation. The subsequent emergence of Fear, Uncertainty, and Doubt (FUD) engulfed the market, compelling investors to retreat and temporarily suspend their cryptocurrency investments.
The consequence of these cautious investment approaches was a decline in the value of digital currencies from their previously attained multi-year highs.
The aftermath of the Terraform Labs collapse was further compounded by the unfortunate implosion of FTX Derivatives Exchange. While numerous digital currencies are still on the path to recovery, grappling with the lingering uncertainties of these market upheavals, Dan Morehead firmly believes that the darkest phase has now passed. In a tweet he shared, he expressed,
“Bitcoin’s year-over-year return bottomed at -76% amidst the FTX debacle last November. It recently flipped positive and is now at 31%. We believe it’s been enough time that we can rally now,”
The Tides Of Optimism Rise
A glimmer of hope emerges to validate Dan’s prophetic visions, as the colossal titan of investment management, BlackRock, takes center stage. It boldly submits an application to the United States Securities and Exchange Commission (SEC), seeking the green light for a groundbreaking spot Bitcoin Exchange Traded Fund (ETF) product.
Although the market watchdog has yet to bestow its approval upon such a product, the industry finds solace in the realm of possibility. BlackRock’s unparalleled track record in triumphing over past ETF applications instills confidence that the odds are stacked favorably in its favor. Should these stars align harmoniously, the Bitcoin market is poised to undergo a magnificent expansion, surging with an exhilarating influx of new funds cascading into its vibrant ecosystem.