A recent letter from Pantera Capital, a leading blockchain investment firm, makes bold predictions about the impending crypto market surge, marking the beginning of what the firm believes is the fourth largest cycle in history. .
The forecast predicts that the crypto market bull run will last 18 to 24 months, supported by several key factors:
absence of bad things
Pantera's letter highlights the positive impact of the absence of adverse events, citing the turbulent years of 2022 and 2023, which were characterized by unprecedented global market volatility.
Despite the challenges, the cryptocurrency space, including the blockchain market, endured a 70% decline in total market capitalization.
“The absence of these supervillains is a small but significant positive, as none of them can destroy the blockchain,” the letter states.
The letter highlights positive legal developments, including court decisions supporting blockchain clarity, including Ripple's XRP and Grayscale's legal victories. Following the launch of the Spot Bitcoin ETF, institutional adoption has gained momentum, and Pantera believes these developments will converge with the upcoming Bitcoin halving, creating a favorable environment for the most prominent crypto bull market. I see it being born.
“They don't have a lot of tools at their disposal, whether it's the SEC or the CFTC,” said Kristin Smith, CEO of the Blockchain Association. It’s one of the current tools available.”
Bitcoin programmability and the potential of DeFi
Pantera Capital's Franklin Bi highlights Bitcoin's untapped potential, arguing that it is the most neglected asset worldwide. He detailed the evolution of Bitcoin as both an asset and technology, and explored the challenges of its programmability.
Bi hinted at Bitcoin's recent development trajectory, mentioning upgrades such as Taproot and BRC-20 tokens, and hinted at the revolutionary potential of decentralized finance (DeFi) on the Bitcoin network. are doing.
The letter highlights the potential of Bitcoin's DeFi as a “$5 trillion opportunity.” The potential value of his DeFi application on Bitcoin is worth $225 billion when mirroring the Ethereum ratio. His leading DeFi application on Bitcoin could ultimately be valued at $20 billion, representing a sizable untapped market within the cryptocurrency ecosystem.
“Globally, I think we are going to see serious attempts to propose a regulatory framework for DeFi,” said Neil Maitra, partner at Wilson Sonsini.
Impact of Bitcoin halving
Pantera has reviewed the impact of the Bitcoin halving and predicts a price spike based on past analysis. Although efficient market theory suggests that prices are predictable, Pantera said, “Even if everyone thinks they know something, it doesn't mean they won't make huge profits. No,” he claims.
Additionally, Pantera's letter signals an effort to explore tokenized U.S. government debt within the expanding realm of real-world assets on the blockchain. The joint letter highlights benefits such as increased liquidity and global accessibility. Discussions on regulatory trends will feature insights from Pantera Chief Legal Officer Katrina Paglia and leading companies in Washington, DC.
as a whole …
Pantera Capital's comprehensive analysis reveals a detailed picture of what is shaping up to be a strong crypto bull market over the next 18-24 months. The study highlights strong factors such as legal developments, institutional adoption, Bitcoin programmability, and the untapped potential of DeFi.
