Pantera Capital Says To Expect More Turbulence In The Crypto Market In The Coming Months ⋆ ZyCrypto

Pantera Capital CEO Reveals Probable Bitcoin Price By August 2021

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Pantera Capital, in a letter to investors on Wednesday, has said investors should expect more meltdowns in the crypto space in the coming months due to the amount of excess leverage in the system.

Pantera, in its letter, breaks down some of the most noteworthy system collapses and concerns in recent months, including the Terra, Celsius, and 3AC debacles. According to the leading crypto hedge fund, each meltdown leaves unique problems for their respective investors, adding that investors can expect more of these in the coming months.

Furthermore, Pantera advises investors within this period to focus more on Bitcoin and less on altcoins. It is worth noting that historically during bear cycles, Bitcoin usually fairs better than the rest of the market.

“In times of stress, the mega-cap bitcoin typically outperforms other, smaller currencies. That’s happening again in this cycle. Most cryptocurrencies have fallen against bitcoin since the November all-time high,” the firm writes.

Consequently, the firm revealed that it had adjusted its portfolio in May to be more Bitcoin weighted. In addition, Pantera says when there are clear signs that the market has formed a bottom, it would consider reallocating some capital back into riskier alts with potential for high reward.

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It is worth noting that there remains a lot of uncertainty in the crypto markets resulting from recent internal structural collapses and the overarching macroeconomic concerns. Consequently, the market has been moving in a very tight range in recent weeks.

Analysts remain split on when the markets will hit bottom and ultimately reverse. However, several pundits agree that the $20k price point should provide significant support for Bitcoin, but a break below could drive it as low as $12k.

It is worth noting that at the time of writing, the price of the leading digital asset is trading significantly above the $20k price point. Bitcoin is up 5.57% in the last 24 hours and 9.75% in the last seven days, exchanging hands at about $22,289 on major exchanges.

Source: https://zycrypto.com/pantera-capital-says-to-expect-more-turbulence-in-the-crypto-market-in-the-coming-months/