Pantera Capital, a crypto investment firm, has only invested in Ethereum (ETH) and Bitcoin (BTC) since the bear market that started in the spring of 2022. Because these two coins, as the largest and oldest coins on the market, were more robust than the others. However, the company made a new statement. It has announced that it will switch back to altcoins from Ethereum and Bitcoin for the first time since spring. This move came as cryptos showed a modest rally in January of 2023. Here are the details…
Pantera Capital, which invests in Ethereum and BTC, is now on the rise in altcoins
According to Pantera’s Co-President of Investment Joey Krug, the company switched to Ethereum last year “to avoid further declines”. But now things seem to have changed. Krug explained that they are returning to altcoins that they believe will “outperform ETH in the next cycle.” The company’s Liquid Token fund, which invests in 15-25 liquid tokens, lost 80 percent of its value in 2022. But since the beginning of 2023, it has risen 47 percent, with the overall bullish sentiment in the market.
Krug pointed out that 2022 is “a very brutal year for risky assets in general.” However, with the market showing signs of recovery, Pantera stated that he is optimistic about the potential of altcoins. The Bloomberg Galaxy Crypto Index fund had dropped 72 percent in 2022 compared to the performance of the Liquid Token Fund. But it also rose nearly 40 percent in January.
Pantera’s focus now on altcoins
Pantera Capital’s decision to re-capitalize altcoins is also a reflection of the growing popularity and interest in decentralized finance (DeFi) projects. Many of these projects are backed by altcoins, and the firm believes they have the potential to disrupt traditional finance and reshape the financial landscape.
The firm’s return to altcoins comes at a time when the market is showing signs of renewed activity. Many investors and traders are watching the crypto space closely for signs of a possible altcoin era. Founded in 2013, Pantera Capital is one of the oldest investment firms in the crypto industry. He has a good track record of making informed investment decisions. His latest move towards altcoins highlights his confidence in the potential of these crypto assets and the future of the market.
Is it time for altcoin season?
At the moment, it remains unclear whether we are experiencing the start of a new alt season in the cryptocurrency market. Because many cryptocurrencies have yet to realize the “meteoric” price jumps that characterize this phenomenon. In the previous bull run of 2020-2021, several altcoins experienced explosive growth. Some have even seen their prices rise 100 to 400 times.
Despite a recent correction, Bitcoin continues to see upward momentum and its price is 11 percent higher than last week. The leading cryptocurrency has maintained its dominance, as evidenced by the Bitcoin Dominance (BTCD) index, which is currently 44.4. This index measures the level of control Bitcoin exerts over the broader crypto market and has been bullish since Jan.
To start a new alt season, it will be crucial for the BTCD index to reverse its uptrend and drop below the 38 support level. Overall, Pantera Capital’s return to altcoins is a positive sign for the crypto market and reflects the firm’s confidence in the growth potential of this exciting and rapidly evolving industry. Meanwhile, movements are expected in altcoins such as ADA, FIL, PRIMAL, FLUX and ICP, as we have also reported as Kriptokoin.com. This can cause prices to become volatile.
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