Bitcoin Rally Might Be Back To 'Normal' by April or 'Sooner' Pantera's

The bitcoin (BTC) market is still healthy, despite its recent selloff, which is usual for the bull runs in this nascent industry, according to Joey Krug, Co-Chief Investment Officer at major crypto investment firm Pantera Capital."I think, in terms of price action, things will be kind of back to normal by April, if not sooner. I think the market does sometimes take a little bit of time to let off steam. It's not going to go up in a straight line," he said during a panel discussion at the Bloomberg Crypto Summit yesterday."You know, in traditional finance a 30% to 40% pullback would be a massive bear market," he added. BTC has dropped by around 20% from its all-time high of USD 58,641 (per Coingecko.com), reached on February 21. At the time of writing (11:37 UTC), it trades at USD 46,349 and is down by 7% in a day, trimming its monthly gains to 42%. Similarly, BTC dropped by around 30% in January after surpassing USD 40,000 for the first time. It then struggled for a month trying to get above this level again, before suddenly rallying to almost USD 60,000, which was followed by massive liquidations of trading positions as futures traders became too optimistic and overleveraged. Meanwhile, as for corporate investments in BTC, Krug said that "appropriate" allocation numbers might be "somewhere between 1%-3%" of cash reserves. Meanwhile, asked about bitcoin’s high volatility, Krug replied that it was actually a benefit in bitcoin’s favor. Bitcoin is “a call option, and volatility is good for options,” he said. In options terminology, a call option represents a bet that prices will rise in the underlying spot market. In contrast with Krug’s remarks, a recent survey of 77 finance executives released by research and advisory company Gartner showed bitcoin’s volatility was their top concern by a large margin, at 84%, when it comes to investing in this booming asset class. As reported, America’s Massachusetts Mutual Life Insurance (also known as MassMutual) purchased USD 100m worth of bitcoin to add to its general investment fund. MassMuttual’s holdings are now 0.04% held in BTC. Meanwhile, Jack Dorsey's Square now holds approximately 5% of their total cash in BTC. At the same time, one of the most bullish non-crypto companies, US-based software developer MicroStrategy has now spent over USD 2bn (including borrowed funds) on buying BTC and they're planning to buy more. According to her, the tech companies have huge cash piles and they really do need to start thinking about that cash as "an asset that may be burning a hole in their pocket.


All data is taken from the source: http://cryptonews.com
Article Link: https://cryptonews.com/news/bitcoin-rally-might-be-back-to-normal-by-april-or-sooner-pan-9359.htm


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