• Pantera Capital believes the worst could also be over for the blockchain and crypto trade.
• Hedge funds consider that the absence of catastrophic occasions is a constructive for cryptocurrencies.
• In response to Pantera, regulatory readability and a halving of Bitcoin may gasoline the subsequent bull market.

Pantera Capital Administration, an American hedge fund targeted on digital property, just lately revealed an open letter addressing the present state of the blockchain and cryptocurrency trade. In a letter titled “Absence of Dangerous Issues,” Pantera famous that the worst could also be over for the blockchain and crypto trade.

Citing what many think about to be probably the most catastrophic occasion in blockchain historical past, the hedge fund famous that the absence of such occasions is a constructive growth for the trade. He additionally highlighted the elimination of some rules as one other profit for blockchain and cryptocurrencies.

Beginning with the early challenges of cryptocurrencies, among the catastrophic crypto occasions that Pantera has recognized embrace the 2013 Mt. Gox incident, the 2016 Bitfinex hack, and the 2017 Jamie Dimon and Larry Fink These embrace unfavorable feedback about Bitcoin and the rejection of Bitcoin ETFs in 2018 apart from the crackdown on Bitcoin. ICO.

Pantera additionally highlighted the Ripple lawsuit that started in 2020 as a major occasion that might hurt the crypto trade. The agency classifies 2022 because the worst 12 months for cryptocurrencies, citing occasions such because the Terra Luna crash, Celsius problem, Three Arrows Capital debacle, and FTX chapter as doubtlessly damaging to the trade. It was emphasised as an occasion.

Pantera believes that by overcoming these challenges, the cryptocurrency trade has the potential to proceed its constructive evolution. The corporate's open letter cited a number of occasions over the previous 12 months as profitable elements that might spark the subsequent section of trade progress.

In response to Pantera, high-profile instances such because the ruling that Ripple's native token XRP isn’t a safety stand out as advantages for the cryptocurrency trade. The letter additionally highlighted Grayscale's victory in its lawsuit towards the SEC concerning its Bitcoin ETF software, noting that this can be a step towards regulatory readability.

Looking forward to future occasions, Pantera famous that adoption by institutional traders seems to have accelerated because the launch of the Spot Bitcoin ETF in January. With the halving anticipated to happen in late April 2024, the hedge fund expects these constructive occasions to come back collectively to offer robust tailwinds for the subsequent bull market.