Despite the recent turbulence in the cryptocurrency market, Hedge fund Pantera Capital predicted a surge in bitcoin’s price in the coming weeks. Tax Day Could Propel Bitcoin’s Rally In its report, titled “The Next Mega-Trade,” Pantera Capital pointed out the various reasons why bitcoin (BTC) could resume its bull run soon. One of them being the approaching “Tax Day,” which is on April 18th, 2022. The company reminded that during the previous bull runs of 2013, 2017, 2020, and 2021, bitcoin’s price soared significantly 35 days prior to the event. However, the crypto only incurred losses around that time as investors were selling their holdings to cover their taxes. “That makes some sense. A lot of crypto traders are new to investing. You can imagine a person buying as much bitcoin as they can. Since they’re “all-in” on crypto, the only way to raise cash to pay their tax bill is to sell some crypto. Prices fall leading up to Tax Day,” the report noted. Crypto Could Emerge as a Separate Niche Subsequently, Pantera Capital also believes that crypto industry will emerge as a separate niche on its own, meaning, it will be cut off from traditional financial markets and start trading independently “And so we think over the next number of weeks, crypto is basically going to decouple from traditional markets and begin to trade on its own again,” the Pantera report read. In 2013, Pantera launched the first cryptocurrency fund in the U.S.The same year, the company also launched the first blockchain-only dedicated venture capital fund. Founded in 2003, the firm currently has $4.6 billion in assets under management and has been involved in 95 venture investments.
The post Bitcoin Will Rally Soon, According to Pantera Capital appeared first on Cryptoknowmics-Crypto News and Media Platform.
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