Over the next 18 to 24 months, "a strong bull market" for cryptocurrencies is anticipated by American hedge fund Pantera Capital. Pantera creator Dan Morehead stated, "We believe the convergence of these positive things will provide strong tailwinds for the next bull market, with the halving expected to occur in late April 2024."
Pantera's Forecast for a Bull Market
The monthly Blockchain Letter, published on Tuesday, provided the crypto market prognosis from Pantera Capital, a U.S. hedge fund that focuses on digital assets. The Blockchain Letters from Pantera address a variety of subjects related to the blockchain ecosystem.
In the Blockchain Letter on Tuesday, Pantera's founder and managing partner, Dan Morehead, detailed the company's experiences with "three full crazy cycles — massive rallies, and then, unfortunately, 85% or so downdrafts." "I think we're in the beginning of the fourth big cycle now," he stressed.
"For most of 2022 and 2023, all kinds of rare, crazy bad things were happening — once-in-a-generation type things," the CEO explained. A key motif at the moment is the absence of evil. Noting that "institutions really pulled back from investing in private markets—a huge 'denominator effect' that the stock market crashing in 2022 had," he said:
They may now invest in private markets since stocks are back at record highs. As a result, I believe that the next 18 to 24 months will likely see a robust bull market for cryptocurrencies.
Following the January introduction of the spot bitcoin exchange-traded fund, Morehead observed that institutional adoption was beginning to pick up speed. "We believe the convergence of these positive factors will provide strong tailwinds for the next bull market, with the halving anticipated to occur in late April 2024."
According to the creator of Pantera, "this is a pivotal moment with positive things like the halving and regulatory clarity - all unfolding simultaneously, coupled with the removal of these traumatic, horrible occurrences in the capital markets and blockchain space from the past couple of years."
Pantera provided the following explanation in August of last year: "Compared to the previous halving, the 2020 halving decreased the quantity of new bitcoins by 43%. It affected the price by 23% as much. If past events were to repeat themselves, bitcoin would rise to $35k prior to the halving and $148k following it. "I believe that blockchain assets (using bitcoin as a proxy) 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," Morehead declared in February of last year.
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