Crypto investment firm Pantera Capital predicts that altcoins will continue to outstrip Bitcoin as central banks continue to print money.
The last investor letter of the crypto investment company Pantera Capital, which has more than $ 300 million in assets, included notes that would especially please altcoin investors.
The letter, published on Wednesday, said that an altcoin bull run of magnitude in 2017 is unlikely to happen again, but is currently in the early stages of a bull market. Emphasizing that the ecosystem has matured in the past three years, according to Pantera Capital, the market has now begun to separate straw and straw. The company, which claims that token projects without any working code will continue to collect tens of millions of dollars with ICOs, says this will happen on a much smaller scale than 2017.
“The trend in Altcoins will continue in 2021”
The company believes that the current trend in altcoins will continue next year. On the subject, “Ethereum and other cryptocurrencies surpassed Bitcoin in 2020 and this trend will continue. We expect cryptocurrencies other than Bitcoin to perform better during the crypto bull markets. All in all, they are high beta assets, and people often tend to buy them after they get Bitcoin first. In 2021, we believe that as the bull market matures, altcoins will achieve a significantly larger market share compared to Bitcoin. ” It said. Bitcoin increased 34 percent this year, while Ethereum rose 88 percent, 0x and Augur rose 98 percent and 97 percent, respectively.
The investment company estimates that the market share of Bitcoin, which is now slightly below 65 percent, will likely decrease as other cryptocurrencies attract more attention. The company noted that “Tsunami money” increased the prices of cryptocurrencies in general and predicts that this is inevitable and these increases will continue.
The company also shared its portfolio weight and the distribution is rarely significantly altcoin-weighted in cryptocurrencies like Pantera Capital. According to the data here, 18 percent of the portfolio consists of Bitcoin while 82 percent consists of altcoins. The company notes that in 2020, Bitcoin gained 31 percent in 2020, while Pantera Digital Asset Fund increased 51 percent.