Blockchain and Crypto Have Taken Steps In direction of Regulatory Readability: Pantera

• Pantera Capital thinks the worst could also be over for the blockchain and cryptocurrency trade.
• The hedge fund believes the absence of catastrophic occasions is optimistic for crypto.
• In keeping with Pantera, regulatory readability and Bitcoin halving may spur the subsequent bull market.

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

Citing what many think about probably the most catastrophic occasions in blockchain’s historical past, the hedge fund famous that the absence of these occasions is a optimistic growth for the trade. It additionally highlighted eradicating some rules as one other plus for blockchain and cryptocurrency.

Starting with the early challenges of crypto, cryptocurrency’s catastrophic occasions recognized by Pantera embrace the Mt. Gox case of 2013, the BitFinex hack in 2016, Jamie Dimon and Larry Fink’s adverse Bitcoin feedback of 2017, and the 2018 Bitcoin ETF rejections in addition to the crackdown on ICOs. 

Pantera additionally highlighted Ripple’s lawsuit, which started in 2020, as a big occasion that might have damage the crypto trade. The agency labeled 2022 as cryptocurrency’s worst yr, highlighting occasions just like the Terra Luna crash, Celsius’ challenges, the Three Arrows Capital debacle, and FTX’s chapter as occasions that might have damage the trade. 

Having overcome these challenges, Pantera believes the coast could also be clear for the crypto trade to proceed in optimistic evolution. The agency’s open letter cited some occasions up to now yr as profitable parts that might set off the subsequent section of the trade’s progress. 

In keeping with Pantera, high-profile instances equivalent to Ripple’s native token XRP dominated as not a safety stand out as good points for the crypto trade. The letter additionally highlighted Grayscale’s win of their lawsuit towards the SEC concerning their Bitcoin ETF software, noting it as a step in direction of attaining regulatory readability.

With a watch on unfolding occasions, Pantera famous that institutional adoption seems to be accelerating after the spot bitcoin ETF launch in January. The hedge fund predicts that with the halving anticipated to happen in late April 2024, the convergence of those optimistic issues will present sturdy tailwinds for the subsequent bull market.