The Crypto Market Has Entered a Bullish Cycle
Pantera Capital has predicted a big bullish trend in the cryptocurrency market that could last for more than a year.
In a recent report released on February 20th, Pantera Capital has predicted a positive cycle for the cryptocurrency market that has recently recovered from several significant shocks. The current state of the market has been described as “The Absence of Bad Things,” highlighting the fact that the cryptocurrency industry is resuming.
In fact, 2022 has proven to be a challenging year for all financial markets. This can be seen, for instance, not only in the decrease in cryptocurrency prices but also in bond and initial public offering (IPO) proceeds.
For years, traditional financial markets have been ignoring Bitcoin’s technological advancements, despite its global significance. As a result, Pantera Capital believes that Bitcoin’s status and potential can play a significant role in the decentralized finance (DeFi) industry. An example of this can be seen in recent developments such as the Taproot upgrade, the introduction of Ordinal assets, and the rise of BRC-20 token projects.After the bankruptcy of FTX, many people have lost confidence in centralized cryptocurrency exchanges. However, both centralized and decentralized exchanges are currently responsible for the majority of trading activity. According to the company, trading dominance is expected to shift towards decentralized exchanges in the near future. Additionally, the company has estimated the potential transfer of the DeFi (decentralized finance) industry to the Bitcoin blockchain at half a trillion dollars, making such assets the leading components of the entire cryptocurrency ecosystem.
The report highlights a growing acceptance of the cryptocurrency industry among institutions. This is evident in the approval of Bitcoin ETFs and the positive outcomes of legal cases against the regulatory authority. The team at Pantera Capital is also confident that the forthcoming halving event will contribute to the initiation of a long-lasting and strong bull market, in line with historical patterns of price increases following halvings. Another significant factor for the onset of the bull phase will be the development of layer-2 solutions, which will stimulate the emergence of a substantial number of new applications and market players.
