Pantera Capital, a crypto investment firm, has announced that it will once again rotate into altcoins from Bitcoin Y Ethereal for the first time since spring.
The move comes as cryptocurrencies have shown a modest rally in January after the market crashed in 2022, with Bitcoin losing more than 60% of its value.
Pantera Capital turns bullish on altcoins
According to Pantera’s co-chief investment officer Joey Krug, the company moved to Ethereum last year “to try to avoid further drawdowns,” but has now begun to turn back on altcoins that they believe will “outperform ETH in the next cycle.”
The Liquid Token Fund, which typically invests in 15-25 liquid tokens at a time, fell 80% in 2022 but is currently up 47% this year.
Krug stated that 2022 was a “very brutal year for risk assets in general”, but with the market showing signs of recovery, Pantera is bullish on the potential of altcoins. The Bloomberg Galaxy Crypto Index fund is down 72% in 2022 and is up nearly 40% in January, compared to the performance of the Liquid Token Fund.
Pantera Capital’s decision to rotate its capital back into altcoins is also a reflection of the growing popularity and interest in decentralized finance (DeFi) Projects. Many of these projects are powered by altcoins, and the firm believes they have the potential to disrupt traditional finance and reshape the financial landscape.
The company’s return to altcoins comes at a time when the market is showing signs of renewed activity, with many investors and traders keeping a close eye on the crypto space for signs of a possible alt season.
Established in 2013, Pantera Capital is one of the oldest investment firms in the cryptocurrency industry and has a track record of making well-informed investment decisions. His latest move into altcoins highlights his confidence in the potential of these digital assets and the future of the crypto market.
Time for high season?
The beginning of a new high season in the cryptocurrency market remains uncertainas a hallmark of this phenomenon, stratospheric price jumps, has not yet occurred. In the previous 2020-2021 bull run, several altcoins experienced explosive growth, with some seeing their prices increase by 100-400 times.
Despite a recent correction, Bitcoin continues to see bullish momentum with its price holding 11% higher over the past week. The leading cryptocurrency has maintained its dominance, as indicated by the bitcoin mastery (BTCD), which currently stands at 44.4. This index measures the level of control Bitcoin exerts over the broader crypto market and has been on an upward trend since January 10.
To kick off a new high season, it would be crucial for the BTCD Index to reverse its bullish trend and fall below the 38 support level. This, however, is a rare occurrence in the market, with Bitcoin usually driving the general direction of the market. market.
Top 5 altcoins to watch out for in February 2023
This week marks the launch of the Cardano (ADA) overcollateralized stablecoin. Also, the network update for Filecoin (FIL) is imminent, while the PRIMAL mainnet will launch.
Meanwhile, Flux (FLUX) is set to halve its block rewards and Internet Computer (ICP) will host a meeting to discuss the most intriguing decentralized finance (DeFi) Projects. These events are expected to draw attention to these altcoins, help prices become volatileand generate excitement in the crypto community.
Overall, Pantera Capital’s rotation back into altcoins is a positive sign for the crypto market and reflects the company’s confidence in the growth potential of this exciting and fast-evolving sector.
BeInCrypto has reached out to the company or person involved in the story for an official statement on recent developments, but has yet to hear back.