Pantera Capital, an American hedge fund, has forecasted a “strong bull market” for cryptocurrencies over the next 18-24 months. Dan Morehead, the founder of Pantera, expressed this sentiment, highlighting the anticipated positive impacts from various factors, including the upcoming halving expected in late April 2024.
In their monthly Blockchain Letter released on Tuesday, Pantera Capital shared insights into their outlook on the crypto market. Morehead, in particular, emphasized the cyclical nature of crypto markets, noting the potential for a fourth major cycle currently underway.
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Reflecting on the challenges faced in 2022 and 2023, Morehead highlighted a shift in institutional sentiment, with institutions now poised to re-engage in private market investments due to the recovery of the stock market. He suggested that this shift, coupled with factors like institutional adoption and the impending halving, could contribute to a bullish trend in the crypto market over the next couple of years.
The founder of Pantera further elaborated, stating, “This moment marks a significant turning point with the resolution of the distressing events that plagued both capital markets and the blockchain industry over the past few years. This, combined with positive developments such as the upcoming halving and regulatory clarity, presents a unique confluence of factors.”
Last August, Pantera provided insights into the impact of previous halving events, noting that the reduction in the supply of new bitcoins by 43% during the 2020 halving had a proportional impact on price, which surged by 23%. They projected that if historical trends were to repeat, bitcoin could rise to $35k before the halving and $148k after. Similarly, in February last year, Morehead expressed confidence in blockchain assets, suggesting that regardless of fluctuations in interest-rate-sensitive assets, the sector was poised for the next bullish cycle.
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