Joey Krug, co-chief investment officer at Pantera Capital, talks about the next bitcoin bull run that has the potential to grow 10 times as according to him the cryptocurrency is “close to a bottom.”
Next Bitcoin bull rally to take crypto market cap 10x higher
Currently, in the red Bitcoin is maintaining stability around $6,500. However, the co-chief investment officer (CIO) of one of the crypto industry’s largest investment firms, Pantera Capital says it is close to a bottom and from here it will move to the next bitcoin bull run that will drive the overall market cap to trillion dollars.
In an interview with Bloomberg, Joey Krug made the prediction of a crypto market to rise ten times to its current valuation,
“If you look at that next bull run, I think the crypto space overall could hit 10x from here.”
Noting the fact that names like Fidelity Investments and Intercontinental Exchange (ICE) entering the crypto market has failed to spark any movement in the market, Krug says the market is waiting for concrete adoption this time in order to catalyze a bull run.
Cryptocurrencies need to achieve improved scalability as the current state of the market is similar to that of the Internet before the dial-up. He shares:
“If you look at the internet, it’s easy to say, ‘Well, you just create an app, get some users, and then you solve the scalability problems.’ But these are all markets, and so if you don’t have scalability, you don’t have market makers, and so you don’t have liquidity.”
The Lightning Network is one such solution to scalability which is basically a second-layer protocol that runs on Bitcoin. Here, transactions don’t need miner validation and can be further processed instantly. Moreover, the user can move funds off-chain into Lightning Network payment channels.
There are a few other solutions as well, however, they are not ready to hit big yet. Krug does shares that some cryptocurrency network can be expected to achieve the Visa/Mastercard level of scalability in the coming years.
While the crypto space work on the scalability part, it doesn’t mean the bear market will stay during that time as according to him the market has come close to its bottom and will remain range-bound for now, until the next catalyst that will skyrocket Bitcoin and the entire crypto market.