Pantera Capital is one of the more popular American hedge funds, solely focusing on cryptocurrencies. Recently, Pantera Capital’s recent report has an interesting overlook for the premier crypto, Bitcoin.
According to the report, Bitcoin is currently traveling at ‘a relatively inexpensive place’. Moreover, this isn’t the only hedge fund that is finding this characteristic about the premier crypto.
Many analysts for the past year have warned about the signs coming from the debt market that could spark another ‘thunderous’ price rally. A major reason for that is the sudden jump in the printing of money due to the COVID pandemic. In spite of interest rates at record low levels in the U.S., there are glaring gaps in the system.
Markets Analyst Dyland LeChair had posted a chart regarding this rise on his Twitter account.
Coming to the Pantera Capital’s report, it clearly states:
“There has never been a time in history with year-over-year inflation at 7.5% and Fed funds at ZERO.”
Besides this, Pantera Capital said:
“The Fed’s manipulation of the U.S. Treasury and mortgage bond market is so extreme that is it now $15 TRILLION overvalued (relative to the 50-year average real rate).”
Declines in the crypto market are directly correlated to the traditional markets. Whenever there is a rise in treasury bond yield, there is a drop in crypto markets. However, Pantera Capital believes that crypto markets will soon decouple from the traditional markets. Following that, we can expect a quick recovery and a strong price rally from the premier crypto sooner than later.