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American hedge fund Pantera Capital has predicted “a strong bull market” for cryptocurrencies over the next 18-24 months. “With the halving expected to occur in late April 2024, we believe the convergence of these positive things will provide strong tailwinds for the next bull market,” said Pantera founder Dan Morehead.
Pantera’s Bull Market Prediction
Pantera Capital, a U.S. hedge fund specializing in digital assets, shared its crypto market outlook in its monthly Blockchain Letter released Tuesday. Pantera’s Blockchain Letters cover a range of topics focused on the blockchain ecosystem.
Dan Morehead, Pantera’s founder and managing partner, explained in Tuesday’s Blockchain Letter that Pantera has been through “three full crazy cycles — massive rallies, and then, unfortunately, 85% or so downdrafts.” He emphasized: “I think we’re in the beginning of the fourth big cycle now.”
The executive detailed: “For most of 2022 and 2023, all kinds of rare, crazy bad things were happening — once-in-a-generation-type things. A very important theme now is the absence of bad things.” Noting that “The stock market crashing in 2022 had a huge ‘denominator effect’ on institutions — and they really pulled back from investing in private markets,” he noted:
With stocks back at record highs, they can invest in private markets again, and so I think the next 18 or 24 months are probably going to be a strong bull market for crypto.
“Institutional adoption appears to be accelerating after the spot bitcoin ETF [exchange-traded fund] launch in January,” Morehead wrote. “With the halving expected to occur in late April 2024, we believe the convergence of these positive things will provide strong tailwinds for the next bull market.”
The Pantera founder continued: “This is a pivotal moment with the removal of these traumatic, horrible occurrences in the capital markets and blockchain space from the past couple years, coupled with positive things like the halving and regulatory clarity – all unfolding simultaneously.”
In August last year, Pantera explained: “The 2020 halving reduced the supply of new bitcoins by 43% relative to the previous halving. It had a 23% as big an impact on price. If history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.” In February last year, Morehead said: “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.”