SNEAK PEAK
- Pantera Capital is now reallocating funds from BTC and ETH to altcoins.
- The move is a step to minimize future drawdowns.
- Bitcoin and Ethereum have seen a significant drop in price in the past 24 hours.
After moving from altcoins to BTC and ETH last year, Pantera, the crypto-focused venture-capital firm, has started to rotate back into some altcoins it believes will “outperform the top cryptos over the coming cycle.” This is according to the Co-Chief of Investment at Pantera, Joey Krug.
Citing people with knowledge of the situation, the move is a step to minimize future drawdowns. It is crucial to remember that the liquid token fund of the cryptocurrency-focused venture capital company Pantera Capital lost 80% of its value in 2022. The fund fell over 23% in November alone due to the collapse of the centralized exchange FTX.
Pantera’s fund, however, has somewhat returned this month with a gain of over 47%, as said in an investor call that was broadcast on YouTube.
According to statements made by Joey Krug, co-chief investment officer at Pantera, on the call, the company’s fund allegedly began moving a significant portion of the portfolio away from altcoins and toward Bitcoin (BTC) and ether (ETH) in the late spring.
The period would have coincided with the failure of Terra’s USDT stablecoin and Luna, the sibling coin, which in turn led to the failure of the lender Celsius Network.
The move also comes as cryptocurrencies have witnessed a minor comeback after experiencing a meltdown in December. Most importantly, Bitcoin’s value dropped by more than sixty percent during this period, with Pantera’s Liquid Token Fund plummeting 80% in 2022. Krug added;
This was a very brutal year for risk assets in general.
In conclusion, Bitcoin (BTC) is changing hands at $22,911.77, a 3.15% drop within the past 24 hours. On the other hand, Ethereum (ETH) is trading at $1,572.42, a 3.40% fall within the same timeframe. It is to be seen if the altcoins will turn green amid this report.
