Bitcoin and Altcoins Swing In Relation to Phases in the Bull Cycle: Pantera Capital
The volatility of digital assets particularly Bitcoin (BTC) can be examined in various stages of a bull market in relation to other tokens, Pantera Capital suggests.
A new market report by Pantera Capital shows the relationship between multiple assets in crypto bull cycles, the state of the market, and perspectives on the 2024 season on Bitcoin, altcoins, and decentralized finance (DeFi).
With a momentous onset to the year, we believe there is still a ton to look forward to in 2024.
In this month's letter, we discuss:
– Predictions for 2024
– Crypto correlations within bull cycles
– State of blockchain venture
– The potential of AIxWeb3https://t.co/kq92Qneie3
— Pantera Capital (@PanteraCapital) January 16, 2024
In the first phase of every bull run, Bitcoin tends to outperform other assets. However, the next phase is dominated by several altcoins taking the torch from the market leader.
Source: Pantera Capital
This is mainly due to the size, market share, and narratives behind the asset. Bitcoin’s market capitalization stands at over $809 billion with a market share of 47.2% making it the most offered cryptocurrency to institutional investors.
As institutional investors enter the market, sparking a bullish momentum, the first cryptocurrency asset and related products they delve into is Bitcoin. This increases the asset’s price and significantly raises the broader market.
This could be seen throughout last year when the market creeped out of the doldrums with an uptick in institutional appetite on the back of a potential spot BTC ETF approval by the Securities and Exchange Commission (SEC).
Following the filing of BlackRock as other traditional investors, the Bitcoin price skyrocketed over 157% in the last 12 months igniting the
