Crypto Bottom is In and Massive Rally Awaits Pantera Capital Predicts
Categories: Crypto News US
After a 50% decline from the top, the bear market in bitcoin (BTC) and crypto more broadly is probably over for now, and a new “massive rally” is likely to happen within the next year, crypto hedge fund Pantera Capital’s CEO Dan Morehead has said. The well-known crypto asset manager added that the bitcoin price is now 56% below an 11-year-old exponential growth trend on the bitcoin chart. “The markets have rarely been so cheap relative to the trend,” he said.
Rising rates ‘for years’ ahead
Morehead also said in his newsletter that we are entering a period of rising rates, and that this is something that will probably continue “for years,” with the 10-year US treasury rate predicted by the firm to triple. The investor noted that the median forecast for the peak in the US Federal Reserve’s Federal Funds Rate is 2.1%.
Decoupling’ already occurring
This latest prediction from Pantera that the crypto market bottom is behind us comes after the firm in early February delivered an outlook that turned out to be spot on. On February 1, the firm’s co-chief investment officer Joey Krug predicted in a call with investors that the correlation between bitcoin and traditional financial markets would break this spring. “And so we think over the next number of weeks, crypto is basically going to decouple from traditional markets and begin to trade on its own again,” Krug said at the time, adding that he expected a move higher for crypto “relatively quickly.”
USD 46k key for further upside
Notably, Pantera is not the only firm that sees an upside from the current price levels in the crypto market. According to crypto hedge fund BitBull Capital CEO Joe DiPasquale, the current consolidation pattern for bitcoin above the USD 46,000 level is “key” for bullish continuation towards the USD 50,000, a major milestone for the bitcoin price.
All-time high in Canadian bitcoin ETF inflows
Another data point to may provide clues as to how investors are positioning themselves for a possible crypto market rally is the level of inflows to bitcoin-backed exchange-traded funds (ETFs). According to crypto analytics provider Glassnode, inflows into Canadian bitcoin ETFs hit its highest level ever, with BTC 6,594 added to the ETFs since January this year.
Bitcoin ETFs in Canada are often paid attention to because the country – unlike the US – has approved several ETFs backed by actual bitcoin rather than bitcoin futures contracts.
Among the many funds listed in Canada, the Purpose Bitcoin ETF saw the biggest increase in holdings during the period with a net growth of 18.7% to reach BTC 35,000. The increase came despite “a storm of macro and geopolitical headwinds,” Glassnode said in a report on Monday. At press time (11:33 UTC) on Tuesday, BTC stood at USD 46,672. The coin is up 1.1% for the beyond 24 hours and down 0.7% for the beyond 7 days.
Pantera Capital, an outstanding computerized money adventure organization, has guessed that the crypto market has shown up at its base and a colossal show is holding on. It's fundamental to observe that as a man-made knowledge language model, I don't have continuous data or the ability to give money related urging.
Pantera Capital is perceived for its broad experience and outcome in the digital money industry. Their forecasts are much of the time in view of top to bottom statistical surveying and examination. Assuming Pantera Capital recommends that the crypto market has hit its base and expects a huge convention, it infers they accept the general market opinion has moved towards a more inspirational perspective.
A few variables could add to this expectation. One component might be the repeating idea of digital money markets, which have encountered times of huge cost increments following business sector slumps previously. Also, positive improvements in the cryptographic money biological system, like expanded institutional reception, administrative lucidity, and progressions in blockchain innovation, could fuel market idealism.
In any case, it's memorable's critical that the digital currency market is exceptionally unstable and flighty. While Pantera Capital's forecast conveys weight inside the business, there are no assurances with regards to monetary business sectors. It's urgent for financial backers to lead their own exploration, look for counsel from monetary experts, and cautiously think about their gamble resilience prior to going with any speculation choices.
It's additionally important that digital currency ventures accompany inborn dangers, including market instability, administrative changes, and potential security weaknesses. It's prudent to practice alert and never contribute beyond what you can bear to lose in any speculation, including cryptographic forms of money.