A new report by Pantera Capital says that the “tsunami of money” we are seeing is leading people to put faith in cryptocurrencies—and not just Bitcoin.
We are currently in an altcoin bull run, says the investment firm.
And one that is likely to continue until mid next year, it concludes.
Bitcoin is set to be outperformed by altcoinsaltcoins, especially as banks continue to print money, according to research from crypto investment firm Pantera Capital.
In its June Blockchain Letter published Wednesday, the hedge fund said that while an altcoin bull run the size of 2017’s is unlikely to happen again, we are in the midst of a bull market cycle—and we will continue to be in one until next year.
BitcoinBitcoin is already being outperformed by the likes of EthereumEthereum and other cryptocurrencies in 2020, and that trend will continue, said the investment firm.
Currently, Bitcoin’s value is up 34% this year—but Ethereum has shot up by 88%, while 0x and Augur have increased by 98% and 97% respectively. Ripple’s XRP, still the third-largest cryptocurrency by market cap, is down 2% this year.
“During cryptocurrency bull markets, we expect assets outside of Bitcoin (alt-coins or alts) to outperform,” said the report. “As a whole, they’re higher beta assets and people tend to buy them after buying Bitcoin, which is usually their first crypto-asset purchase.”
Bitcoin’s share of the total cryptocurrency market—“Bitcoin dominance”—is currently hovering just below 65%, but it is likely to drop, said Pantera. This is because other cryptocurrencies will begin to gain more traction.
The growing interest in Bitcoin and other cryptocurrencies is a reaction from investors spooked by the excessive money printing by central banks, the report said.
“Bitcoin was created in a reaction to the previous money printing,” Pantera said. “The price of bitcoin has gone up exponentially during this 10-year period of what was at the time unprecedented money printing. What’s going on in the world today is an order of magnitude larger.”
The Bank of Korea is considering linking its deposit tokens to a public blockchain, a move that would position its state-backed digital currency alongside private-sector stablecoins operating on open networks.
The tokens will be “a type of stablecoin issued within the digital currency system built and operated by the Bank of Korea,” the bank’s Deputy Governor Lee Jong-ryeol said in a statement Decrypt has confirmed with local sources.
"We are considering a direction in which it will coexist with...
Professor Andrew Urquhart is Professor of Finance and Financial Technology and Head of the Department of Finance at Birmingham Business School (BBS).
This is the sixth instalment of the Professor Coin column, in which I bring important insights from published academic literature on cryptocurrencies to the Decrypt readership. In this article, we’ll investigate cryptocurrency derivatives.
Bitcoin has gone from being an obscure digital asset traded by blockchain enthusiasts to one of the most trade...
Bitcoin (BTC) may be gaining momentum globally, but in Australia, it’s also attracting political ire.
On May 23, Senator Gerard Rennick dismissed Bitcoin as a “Ponzi scheme,” sparking immediate backlash from crypto industry groups and users alike.
“Bitcoin will ultimately go to a $1 million dollars. Why? Because it’s a Ponzi scheme whereby BlackRock will pump more and more dollars into a supply-constrained product,” Rennick tweeted in response to a user who sarcastically asked for his “special c...