The Coast Is Clear for Blockchain and Crypto Acceleration: Pantera

• Pantera Capital thinks the worst may be over for the blockchain and cryptocurrency industry.
• The hedge fund believes the absence of catastrophic events is positive for crypto.
• According to Pantera, regulatory clarity and Bitcoin halving could spur the next bull market.

Pantera Capital Management, an American hedge fund focused on digital assets, recently published an open letter addressing the state of the blockchain and crypto industry. In the letter titled “The Absence of Bad Things,” Pantera noted that the worst may be over for the blockchain and cryptocurrency industry.

Citing what many consider the most catastrophic events in blockchain’s history, the hedge fund noted that the absence of those events is a positive development for the industry. It also highlighted removing some regulations as another plus for blockchain and cryptocurrency.

Beginning with the early challenges of crypto, cryptocurrency’s catastrophic events identified by Pantera include the Mt. Gox case of 2013, the BitFinex hack in 2016, Jamie Dimon and Larry Fink’s negative Bitcoin comments of 2017, and the 2018 Bitcoin ETF rejections besides the crackdown on ICOs. 

Pantera also highlighted Ripple’s lawsuit, which began in 2020, as a significant event that could have hurt the crypto industry. The firm classified 2022 as cryptocurrency’s worst year, highlighting events like the Terra Luna crash, Celsius’ challenges, the Three Arrows Capital debacle, and FTX’s bankruptcy as events that could have hurt the industry. 

Having overcome these challenges, Pantera believes the coast may be clear for the crypto industry to continue in positive evolution. The firm’s open letter cited some events in the past year as winning elements that could trigger the next phase of the industry’s progress. 

According to Pantera, high-profile cases such as Ripple’s native token XRP ruled as not a security stand out as gains for the crypto industry. The letter also highlighted Grayscale’s win in their lawsuit against the SEC regarding their Bitcoin ETF application, noting it as a step towards achieving regulatory clarity.

With an eye on unfolding events, Pantera noted that institutional adoption appears to be accelerating after the spot bitcoin ETF launch in January. The hedge fund predicts that with the halving expected to occur in late April 2024, the convergence of these positive things will provide strong tailwinds for the next bull market.