Pantera Capital believes Bitcoin could rally higher soon thanks to the consequences of the Fed policies and the taxation policies as we can see more today in our latest bitcoin news.
Despite the many turbulences in the crypto market, Pantera Capital believes tht Bitcoin could soon rally higher in the next few weeks. According to the investment company Tax Day, this could be one of the main propellers, and the crypto industry could soon separate from the traditional financial markets and could behave independently.
Bitcoin’s past few months have been bearish and many proponents expected to see if it was going to hit $100,000 by the end of 2021 but it finished the year below $50K with the start of the year meaning many drops. February was another negative tradign day as the military conflict between Ukraine and Russia led to major price slumps for the asset but BTC managed to recover most of the losses and stands below $39,000.
ADVERTISEMENT
In the report dubbed “the Next Mega-Trade” Pantera Capital outlined the reasons why BTC could resume the bull run soon and one of them is approaching the Tax day which will happen this year on April 18th. The company reminded that back in 2013, 2017, 2020, and 2021, the BTC price soared dramatically 35 days before the event but each time the asset lost ground, the investors started selling 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.”
Pantera Capital also touched upon the FED policies during the COVID-19 pandemic and the company called for mass printing of fiat currencies as well as manipulation of treasuries which was a written mix. If furhter blamed the American central bank for rising inflation and an economic mess inside the US borders. Pantera Captial said there’s a bubble that will soon burst after which the FED will have to raise the interest rates higher. According to the CEO Dan Morehead, this sounds like great news for the crypto space:
“I have a very strong conviction that the markets are really getting this wrong and that the rise in interest rates (which I think was pretty obvious that it was going to happen and will keep happening) is not really that bad for crypto. And relative to the other asset classes, is actually really great for blockchain prices.”
Pantera Capital also believes that the crypto industry will emerge as a financial niche on its own which means that the fluctuation in traditional markets will not be a major concern:
“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.”
ADVERTISEMENT
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
