Investing.com – In a blog post titled “The 7th Bull Cycle” published on Wednesday, Pantera Capital CEO Dan Morehead and his analyst team said the cryptocurrency industry is going to have to rebuild its relationship with investors. centralized institutions if it is to continue to develop.
Emphasizing that “In the space of a few months, the world has seen Three Arrows Capital collapse, Do Kwon’s LUNA disintegrate, Voyager Digital go bankrupt and the FTX empire of Sam Bankman-Fried (SBF) shatter ”, the letter judges that all these scandals are due to “a combination of bad actors skirting the lines in jurisdictions without clear regulation”.
The analysts thus judged that “If 2022 was the year of breaking the rules and failing, I believe that 2023 is the year in which entities rather follow the rules and enjoy the rewards that come with them”.
Not forgetting that “the initial promise of crypto included complete decentralization, in order to completely disable the potential for bad actors to become involved in the financial system”, Pantera nevertheless judged that “for crypto to be widely adopted and used by individuals, institutions and governments, centralized entities still have a role to play”.
Thus, Pantera believes that “centralized institutions must first focus on restoring the trust that has been lost in the turmoil of the past year”.
The crypto bull market is already here, according to Pantera
The article also states that “market conditions will no doubt improve the morale around the digital asset industry”, and clearly judged that “the next bull cycle is here, regardless of what happens in the classes. interest rate sensitive assets. »
From a more technical point of view, Pantera pointed out that “the decline from November 2021 to November 2022 was the median of the typical cycle”, noting that “this is the only bear market to have more than completely erased the previous bull market “, having canceled “136% of the previous rally. »
It should be noted that this letter from Pantera comes a few weeks after its boss Dan Morehead wrote his annual outlook, in which he reiterated his forecast that the industry can only go up from now on.
“Blockchain’s resilience in the face of a dire macro market for risky assets and historical idiosyncratic catastrophes is impressive,” Morehead said, adding, “I think it [le bitcoin] has already bottomed out and that we will soon see blockchain assets continue their 13-year upward trend of 2.3x per year.”