According to Pantera Capital, Bitcoin (BTC) is beginning its “seventh bull cycle” and investors should not be scared of crypto post-FTX. In its latest “Blockchain Letter” on Feb. 8, the asset management firm’s CEO, Dan Morehead, predicted that 2023 would be a “year for rebuilding trust.”
Morehead argued that the drawdown from Bitcoin’s latest all-time highs had placed the market well within the historical context, despite dipping below its previous bull market all-time high after the FTX debacle in November 2022. He believes that the market is now “beginning to grind higher” and is on its way to fresh record highs.
Morehead also noted that 2022 was a year of booms and major busts, especially in the centralized finance (CeFi) space. He pointed to the collapse of Three Arrows Capital, Do Kwon’s LUNA, Voyager Digital, and Sam Bankman-Fried’s (SBF) FTX empire as examples of this. He believes that in order for the crypto market to rebound, trust must be rebuilt in CeFi on a jurisdiction-by-jurisdiction level.
Overall, Pantera Capital is optimistic about the future of the crypto market and believes that investors should not be scared of crypto post-FTX. They believe that the market is now beginning its seventh bull cycle and is on its way to fresh record highs. They also believe that trust must be rebuilt in CeFi in order for the market to rebound.