Pantera Capital Projects Bitcoin Price Resurgence and Increased DeFi Market Activity
Cryptocurrency management company Pantera Capital has released its yearly projections on Bitcoin (BTC) and the wider industry with expectations of more bullish activity for the market leader.
In a recent market report, the firm highlighted the projected movement of the Bitcoin price valuation. The Pantera Capital Bitcoin price prediction considers past references and future upticks around cryptocurrencies, including innovations in decentralized finance (DeFi), tokenization, and Zero-Knowledge Proofs.
With a momentous onset to the year, we believe there is still a ton to look forward to in 2024.
In this month’s letter, we discuss:
– Predictions for 2024
– Crypto correlations within bull cycles
– State of blockchain venture
– The potential of AIxWeb3https://t.co/kq92Qneie3
— Pantera Capital (@PanteraCapital) January 16, 2024
Pantera Capital Bets on Bullish Bitcoin Price Prediction
Bitcoin is expected to double down on its blistering run toward the end of 2023 with several factors likely to spur a new price uptick this year.
According to the report, Bitcoin staged a comeback last year. Its market share rose from 38% in January, after a 55% value cut, to about 52% in December.
This year, the upcoming Bitcoin halving, the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC), and more programmable features are reasons the asset is expected to pull off a resurgence.
Traditionally, BTC halving is associated with a bullish phase as mining the asset comes with a reduced reward increasing scarcity and demand for the cryptocurrency.
The April halving will reduce mining rewards to 3.125 BTC from the current 6.25 BTC. Consequently, miners are scaling up efficiency and acquiring key assets ahead of the event.
A poll conducted by CryptoRanks.io shows that about 79% of digital asset users are positive about the upcoming halving in expectation of a price uptick.
Less Than 100 Days Left Until Bitcoin Halving
In just 14,117 blocks, #Bitcoin will reach the next milestone: the block reward will be cut by 50%. This event could be another catalyst for $BTC price growth.
Almost 79% of CryptoRank users are bullish on #BTC halving! What do… pic.twitter.com/R9442lfDEF
— CryptoRank.io (@CryptoRank_io) January 15, 2024
The Bitcoin price is up 401% from the last halving in 2020. Users also point to the 2021 bull run, which saw the asset hit an all-time high above $63,000. According to some, this was a halving effect, although that was not the only reason for the price surge.
Institutional appetite to fuel drive
Q4 2023 was filled with spot Bitcoin ETF approval optimism, leading to a price rally above $44,000 before a market correction.
Several analysts project a rise because the ETF would create a new window for institutional investors to pour into the market. Moreover, the approval is expected to push for more regulations around the asset.
However, the asset’s price has declined since the approval, and Bitcoin trades at $41,005 at press time. Still, many believe institutional appetite leads to more exposure and adoption.
Per the Pantera Capital report, the Bitcoin ecosystem will see layer 2 networks support scalability and smart contracts with more use cases.
“The Bitcoin ecosystem should coalesce around one or two Turing-complete smart contract languages, with top contenders including Rust, Solidity, or the extension of a Bitcoin-native language such as Clarity. This language will become the “standard” for Bitcoin development, similar to how Solidity is considered to be the “standard” for Ethereum development.”
BTC Ordinals may also record increased numbers alongside a projected “DeFi Summer 2.0” on Bitcoin that will see assets and Total Value Locked (TVL) increase.
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