The founder of Hedge Fund Pantera Capital, which specializes in cryptocurrencies, shared his predictions about the direction of the market. According to Dan Morehead, the founder of the Hedge Fund, the time has come for the crypto market to rise.
The crypto world has had a pretty harsh winter
As you follow on Kriptokoin.com, around this time last year, TerraUSD (UST), the industry’s first algorithmic stablecoin, crashed. An attack by unknown actors at that time was effective in this collapse. After that, the stablecoin became de-peg and failed to hold the $1 stable. After that, it rapidly depreciated towards zero. The deep correlation between UST and Terra (LUNA) has caused the digital currency to lose 99.9% of its value.
This incident affected parent company Terraform Labs as well as many crypto venture capital firms and hedge funds with deep exposure to the two tokens. Among the first firms affected were Three Arrows Capital (3AC), Celsius Network and Voyager Digital. Fear, Uncertainty and Doubt (FUD) dominated the market after the bankruptcy of these companies. So much so that investors have become afraid to invest in crypto. Conditions have become overwhelming for investors, who have largely hibernated. Due to these conservative investment strategies, the crypto world has slipped from its previous multi-year highs to lows.
According to the founder of Pantera Capital, the crypto winter is over!
Following the collapse of Terraform Labs, the FTX Derivatives Exchange exploded. This made things even worse in the crypto world. Many cryptocurrencies could not get over the impact of these market uncertainties. That said, Dan Morehead, founder and Managing Partner of Pantera Capital, says the worst is over. Morehead is optimistic about the price movements of the broader digital currency ecosystem going forward. In this context, Morehead made a statement on his official twitter account. In his statement, he reminded of the events leading up to the crypto winter and that a turnaround is imminent. The founder of Pantera Capital shared:
Bitcoin’s year-over-year yield bottomed out at -76% last November amid the FTX debacle. It recently turned positive and is now at 31%. We believe that enough time has passed before we can rally now.
It’s been over a year since Terra/LUNA, Three Arrows Capital, et al.
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. pic.twitter.com/9OYgStmz00
— Dan Morehead (@dan_pantera) June 20, 2023
BlackRock’s move boosts positive sentiment in the market
Meanwhile, last week, BlackRock filed with the United States Securities and Exchange Commission (SEC) to launch its spot Bitcoin Exchange Traded Fund (ETF) product. BlackRock is one of the world’s largest investment managers. Therefore, this move by BlackRock supports Dan Morehead’s predictions.
On the other hand, the SEC has not approved such a product to date. However, the industry remains optimistic that BlackRock has a good chance of being approved, with excellent success rates in previous ETF applications. As a matter of fact, the leading crypto made a strong move above $ 28 thousand with the effect of this application. If the predictions we mentioned come true, it is likely that the Bitcoin market will expand significantly with new funds flowing into the ecosystem.
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