According to the CEO of the prominent hedge fund, the XRP lawsuit ruling may play a critical role in shaping a robust crypto bull market in the near future.

In the ever-evolving crypto world, investors, speculators, and enthusiasts are constantly attempting to gauge the potential scale and impact of bull markets. Amid such widespread speculation, Pantera Capital’s latest report emerges as a beacon of optimism.

Read Also: Ripple CEO Garlinghouse: XRP Poised to Rival Bitcoin with Prospects of $10,000+

This comprehensive report accentuates the potential positive influence of the XRP ruling on the crypto market. But that’s not all; the report also spotlights other crucial market influencers.

This includes the highly anticipated Bitcoin halving slated for April 2024, and the series of endorsements from the globally recognized asset manager, BlackRock.

XRP’S Ruling: A Boost For The Bullish Sentiment?

A significant portion of the report revisits a fascinating dialogue that transpired between Carol Massar, a well-respected Bloomberg correspondent, and Dan Morehead, the CEO of Pantera Capital.

This conversation took place during a Bloomberg Invest panel in June 2023. Massar, curious about the crypto industry’s next unforeseen major occurrence, posed this question to Morehead. In response, Morehead’s attention immediately gravitated towards the ongoing legal proceedings between Ripple and the SEC.

Elaborating his stance, Morehead posited that the culmination of the lawsuit might be unveiled in the imminent months. Moreover, he ventured a prediction, giving Ripple a 50% chance of emerging victorious from this legal battle.

Should Ripple secure a win, Morehead’s forecast is that it would have profound implications for the crypto sphere. He opined, “That could be the positive black swan that we’re all concerned about. The next ‘shoe to drop’ could be a nice thing.

From Morehead’s vantage point, achieving regulatory clarity stands as the much-anticipated boon for the industry. He perceives a favorable outcome for Ripple as a potential path leading toward this much-desired clarity.

Read Also: Legal Expert Michael Selig: No Common Relationship between Ripple and XRP Buyers

Anticipating The Next Bull Wave

The report by Pantera Capital doesn’t just stop at present-day analysis; it casts its gaze into the future, making educated predictions about the imminent crypto bull market.

Drawing from historical data, particularly the duration, and patterns of previous bearish phases, the report postulates that the current bear market might be drawing to a close.

When the bearish trends wane, the report anticipates a confluence of factors to trigger the next bull phase.

Elaborating on this, the report elucidates, “We believe the combination of recent positive events – the XRP ruling and endorsements by BlackRock et al., in addition to the Bitcoin Halving expected to occur in April 2024, provide a strong setup for the next bull market for digital assets.”

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Amid the recent SEC attacks on several crypto companies and projects including Kraken exchange and Paxos-issued stablecoin (BUSD), the earliest hedge and venture funds founder is confident the next bull cycle is here. 

In a recent Newsletter titled ‘The Seventh Bull Cycle,’ Dan Morehead alongside two other crypto and blockchain technology experts Ryan Barney, and Sehaj Singh, shared their bullish expectations for the crypto market. 

Ryan Barney, a senior investment associate at Pantera reflected on centralized finance and software in the newsletter. According to him, 2023 will be the year for rebuilding trust in centralized finance (CeFi). Recall that trust for CEXes dropped drastically last year following the failure many of them recorded, including FTX. 

Analyzing the bitcoin (BTC) price cycle, Pantera Capital CFO disclosed that the hedge fund has invested through four crypto winters already. More so, Morehead added that in the last 12 years, BTC price has been in a secular uptrend of 2.3x annually. 

Hence, the firm which has roughly $4.1 billion worth of assets under its management at press time, and has been investing through the six bear cycles, believes the seventh bull cycle is here. 

Pantera Capital’s founder wrote: 

“Pantera has been through 10 years of Bitcoin cycles, and I’ve traded through 35 years of similar cycles. I believe that blockchain assets have seen the lows and that we’re in the next bull market cycle – regardless of what happens in the interest-rate-sensitive asset classes.

“The decline from November 2021 to November 2022 was the median of the typical cycle. This is the only bear market to more than completely wipe out the previous bull market. In this case, giving back 136% of the previous rally…

“I think we’re done with that and beginning to grind higher.  I believe that blockchain assets have seen the lows and that we’re in the next bull market cycle – regardless of what happens in the interest-rate-sensitive asset classes.

“That would be the seventh bull cycle, after six bear cycles. (Pantera’s been investing through twelve of the thirteen moves.”

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In the blockchain newsletter for the month of June 2022, Pantera Capital explained what triggered the fiascos mentioned above.

For Terra ecosystem, the firm said the crypto industry’s detractors will certainly term the incident as a big deal of failure, but it cannot overshadow blockchain’s utility and promises.

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Explaining further, the firm stated that the Terra ecosystem’s collapse is similar to the dot.com era when some experiments worked, while others failed. This led to the failure of Pets.com but didn’t mean the internet has no viable utility. It only means that one business model wasn’t right for the time.

So, the newsletter says LUNA’s failure only means that one type of algorithmic stablecoin failed to work as planned, which does not imply that blockchain technology has failed.

Read Also: Three Arrows Capital (3AC) Files Chapter 15 Bankruptcy, Seeking to Defend its US Assets

Pantera Capital noted:

“There’s a ton of stress about whether Tether is fully backed by collateral.  In 2019 they admitted it wasn’t.  It serves its purpose – shadow banking system.  However, most stablecoins, like Coinbase and Circle’s USDC are fully backed with treasury bills, very transparent, and audited. 

“You have to work through some of these experiments. Ultimately, that vast majority of the stablecoin market will look just like USDC and FedCoin.”

For Celsius, the company wrote:

“Celsius is a centralized crypto lending business.  Their business model is:  you deposit USDC, ETH, some sort of cryptocurrency, and they promise a yield on it.“

“What ended up happening is they put a bunch of those assets into either very risky projects or into things that have a long liquidity horizon.  Classic leveraged lending model – borrow short-term, lend long and risky. 

“The liquidity mismatch where you have customers who expect to be able to withdraw their funds within 24 hours, but you have assets that may be locked up for months.  Celsius ended up freezing withdrawals and were forced to sell a huge amount of crypto over the last week, which is part of what caused a cascade in prices.”

Read Also: $559.6 Million Used By Three Arrows Capital (3AC) to Acquire Locked LUNA Now Worth $670

Regarding the current issue faced by Three Arrows Capital (3AC), Pantera Capital said:

“Similar situation with Three Arrows Capital, known as 3AC.  Very leveraged with liquidity mismatches. They weren’t able to meet their margin calls.  They ended up being a forced seller in a time where there wasn’t that much liquidity in the markets.

“The markets are very efficient.  With a 70-90% downdraft we probably have worked through most of the problems.  We think these events have mostly washed through the crypto space.”

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The post Pantera Capital Highlights Terra (LUNA), Celsius, and Three Arrows Capital’s Fiasco appeared first on Times Tabloid.

In a recent interview on the Bankless YouTube channel, Morehead revealed the reason for hoping to see cryptocurrencies serving as a safe haven for investors during a broad financial crisis.

Read Also: Fidelity Pushes Bitcoin Further Into Mainstream Adoption in the U.S. by Offering It For Pension Plans

According to Morehead, the crypto markets will prove to have a unique resiliency towards tightening monetary policy. Unlike bonds, real estate, and equities, Morehead says crypto assets will likely be unfazed by rising interest rates, which most market participants are already anticipating.

Pantera Capital founder added that an asset such as Bitcoin (BTC) should remain indifferent to changes in interest rates.

Dan Morehead noted:

“I’m massively bullish on crypto right now and I think that the reason is because every two years, for the last 10 years, an order of magnitude more people come into crypto, so I think that steady flow of just smart people reading about it is coming.

“But the other asset classes being destroyed think is going to sink in. Basically, there’s almost nowhere to hide. That’s why we call it the ‘great unwind.’ Everything except crypto I think is really going to be impacted.

“If we’re even partly right, bond yields are going to go to five percent or higher, obviously that crushes bond prices but it has to impact stocks and real estate and anything else that has a discounted cash flow.

Read Also: Israel’s Largest Bank Launches Trading Services for Bitcoin and Ethereum via Partnership with Paxos

“So I think for a normal investor looking at the kind of normal asset classes…they’re going to just say ‘hey, if we have money to put to work, it’s hard to imagine putting it to work in any of these other things,’ and crypto should be completely disconnected from interest rates.”

“There really isn’t any reason that a utility token like Bitcoin should really care if rates are zero, five, ten percent. I don’t see why it should matter so I do think they will decouple which is a story we’ve been all talking about for a decade.

“The reality is Bitcoin’s typically not correlated with everything else but it does get really correlated in these stress moments when the S&P comes off a big bunch.”

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Pantera partner Paul Veradittakit stated in the latest letter to investors that rival smart contract platforms are eating away the market share of Ethereum (ETH), the second-largest cryptocurrency by market capitalization, which now accounts for 63% of the total value locked (TVL) in decentralized finance, down from 97% at the start of 2021.

Read Also: Non-Fungible Token (NFT) Sales Volume on Solana Blockchain Surpasses $1 Billion

According to Veradittakit, Solana (SOL), which is seen as a faster and cheaper alternative to Ethereum, has the potential to grow rapidly in 2022, considering the increase in the number of projects in its ecosystem.

Paul Veradittakit noted:

“Solana, which offers unparalleled transaction throughput, saw an incredible 2021, reaching a peak TVL of $15 billion and a peak price of $260 in November versus $0.22 when it began trading in April 2020.

“Recent activity in the Solana community, including the launches of massive funds for decentralized social media and gaming, suggests that the ecosystem will continue to grow immensely in the coming year.”

Read Also: JPMorgan: Ethereum Is Losing Ground to Solana in the Non-Fungible Token (NFT) Sector

Likewise, Veradittakit stated that Near, which launched the Rainbow bridge that enables the transfer of digital assets between blockchains, is set for an explosion in terms of growth in 2022:

“Bridges (which enable interoperability between vastly different networks), such as NEAR’s Rainbow Bridge, will help accelerate the growth of non-Ethereum ecosystems by expanding access to liquidity and allowing easier composability of digital assets.

“Ethereum virtual machine (EVM) platforms, like Aurora on NEAR, are also making it easier than ever for Ethereum-based DApps (decentralized apps) to launch on other chains, enhancing cross-chain engagement within DeFi.”

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The post Pantera Capital: Solana (SOL) and Near Are Set For Immense Growth in 2022 appeared first on Times Tabloid.

In an interview with Bloomberg, Pantera Capital CIO said within the next 10 to 20 years, he expects 50% of the world’s financial transactions to involve Ethereum (ETH), citing the assets underlying technology.

Read Also: Tesla Owners Mine Bitcoin and Ethereum Using Power from Their Idle Cars

In the course of the conversation, Krug acknowledged the fact that Ethereum has lots of competitors in the industry. He, however, stated that the blockchain will continue as the number one smart contracts platform.

Joey Krug noted:

If you roll the clock forward 10 to 20 years, a very sizable percent, maybe even north of 50%, of the world’s financial transactions in some way, shape or form will touch Ethereum.”

Krug, who is an early decentralized finance (DeFi) developer, is optimistic that competitors will eventually make Ethereum their base once the much-anticipated upgrade from proof of work (PoW) consensus algorithm to proof of stake (PoS) is successfully completed.

The upgrade is expected to validate transactions that are more efficient and environmentally friendly than the current system of validating transactions.

Read Also: American Rapper Meek Mill Says Fans Need Ethereum Address to Hear His New Mixtape

Pantera Capital CIO added that “There’s too many trade-offs other chains are making that Ethereum is not making on the decentralization side that are pretty important.” He further stated that he doesn’t “know if they’re best suited to be the new global financial settlement layer.”

Pantera Capital is one of the earliest digital asset investment firms. In 2013, the firm launched the first investment fund focused on Bitcoin in the United States. As stated by Krug during the interview with Bloomberg, Ethereum (ETH) sits among Pantera’s top three positions across funds.

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