CEO of Pantera Capital is confident that the rate of the main digital coin will rise again

The CEO of Pantera Capital, Dan Morehead, says that the crypto winter will soon come to an end, and the value of bitcoin will begin to rise again. He points out that the current market fluctuations are quite normal, this has happened more than once over the past 10 years.

“We have gone through three big bear market cycles. I actually think we hit our lows in June and we’re in for the next bull market. It may be difficult and may take some time, but I think we are in the next phase of the rally,” Morehead said.

According to him, the price of the first crypto coin will continue to grow by about 2.5 times a year. However, the expert emphasized that the cryptocurrency space has recently changed and is no longer focused on BTC and ETH.

Analysts at the auditing company KPMG believe that a drop in investor activity will be a prerequisite for the crypto market to end this year with results much more modest than 2021. Based on the results for the first half of 2022, experts pointed to a massive change in the profile of investors.

Until 2018, a significant share of investments was from retail investors, and now a significant part is accounted for by institutional investors. The latter believe that cryptocurrencies are correlated with traditional assets.

But macroeconomist and crypto enthusiast Lyn Alden is sure that bitcoin has advantages over fiat and gold against the backdrop of current inflation in the economy and tight control over the financial market.

“The main problem is that we have an inflationary economic system. This is quite problematic for developed countries. In small and developing countries, the average inflation rate is much higher, and citizens usually experience hyperinflation during their lifetime. In this case, they lose their savings if they keep them in the national currency,” the economist said.

According to her, the second serious problem is the overregulation of the financial market. Alden emphasizes that any legal transactions require permission from the bank, which is easy to obtain in some countries. However, there are more authoritarian states where “it is difficult to do this, and this is a serious problem for the financial system.”

The analyst believes that Bitcoin acts as “its own decentralized transfer agent and registrar.”