Anticipate Notable Upsurge in Cryptocurrency Market in the Next 18-24 Months – Here’s What to Anticipate
Pantera Capital, a prominent blockchain investment firm, has made a bold prediction about the upcoming surge in the crypto market, marking it as the fourth-largest cycle in history.
The forecast anticipates a bull run in the crypto market that will last between 18 to 24 months. This surge will be supported by several key factors, as outlined below.
One of the main factors highlighted in Pantera’s letter is the absence of negative events. The letter points out the tumultuous years of 2022 and 2023, which were marked by unprecedented global market swings. Despite these challenges, the cryptocurrency space, including blockchain markets, managed to withstand a 70% decrease in total market capitalization. According to the letter, the absence of these adverse events is a massive positive for the industry.
The letter also emphasizes positive legal developments, such as rulings favoring blockchain clarity, including victories in Ripple’s XRP and Grayscale’s lawsuits. With institutional adoption gaining momentum after the launch of the spot bitcoin ETF, Pantera sees these developments converging with the upcoming Bitcoin halving, creating a favorable environment for a major crypto bull market.
Kristin Smith, CEO of Blockchain Association, believes that regulatory bodies like the SEC or the CFTC have limited tools at their disposal. Therefore, enforcement actions are often used to determine the boundaries within the industry.
Pantera Capital’s Franklin Bi highlights Bitcoin’s untapped potential, describing it as the most neglected asset globally. Bi explains Bitcoin’s evolution as both an asset and technology, specifically focusing on its programmability challenges. Bi suggests that recent upgrades like Taproot and BRC-20 tokens indicate a potential breakthrough for decentralized finance (DeFi) on the Bitcoin network.
The letter also addresses the potential of DeFi applications on Bitcoin, which could be a half-trillion-dollar opportunity. If DeFi on Bitcoin reaches the proportions of Ethereum, the potential value of these applications could be worth $225 billion. The leading DeFi application on Bitcoin could eventually be valued at $20 billion, representing a significant untapped market within the crypto ecosystem.
Neel Maitra, Partner at Wilson Sonsini, believes that there will be a global effort to establish a regulatory framework for DeFi.
Pantera revisits the impact of Bitcoin halving, projecting a price surge based on historical analysis. Despite the Efficient Markets Theory suggesting that pricing anticipation is already factored in, Pantera asserts that there is still a lot of money to be made.
Additionally, Pantera’s letter discusses its exploration of tokenized U.S. treasuries within the growing realm of real-world assets on the blockchain. The letter emphasizes the benefits of tokenization, including enhanced liquidity and global accessibility. The discussion on regulatory developments includes insights from Pantera’s Chief Legal Officer, Katrina Paglia, and key players in Washington D.C.
In conclusion, Pantera Capital’s comprehensive analysis provides a detailed overview of the factors shaping a strong crypto bull market in the next 18 to 24 months. The study highlights factors such as legal developments, institutional adoption, Bitcoin’s programmability, and the untapped potential of DeFi.