Pantera Capital’s Cosmo Jiang expresses optimism for the crypto market, suggesting that the most extreme selling phase is likely over. Despite ongoing macroeconomic challenges, digital assets like Bitcoin and Solana appear to be recovering compared to equities. Jiang argues that positive industry developments aren’t being priced in, even as the market faced its toughest quarter since 2018.
A general partner at Pantera Capital, a digital asset investment firm, is feeling hopeful about the future of cryptocurrency. Cosmo Jiang believes that, despite serious corrections since Bitcoin reached an all-time high in January, we might have already passed the most extreme selling phase. This optimism comes in light of persistent macroeconomic challenges still looming over the crypto landscape.
In Jiang’s view, the quarter was tough, driven by large macro forces that have dampened appetite for risk. He points out that the biggest concern remains uncertainty regarding tariffs and their potential impact on the global economy. Jiang admits that the situation is still cloudy, as evidenced by notoriously low sentiment indicators. Nevertheless, he argues that these indicators hint that we might be through the gravest selling period.
Looking ahead over the short term, Jiang has noticed that crypto assets are showing a degree of resilience compared to traditional assets. He explains, “We are starting to see signs that digital assets are performing better on a very short time frame.” For instance, he highlights that in April so far, digital currencies like Solana and Bitcoin are on the rise, while equity markets have taken a hit. It raises the possibility that just as digital assets were quick to decline, they could also be the first ones to recover and bounce back.
However, Jiang believes crypto prices presently don’t reflect some of the encouraging developments within the industry, including a more favourable regulatory stance in the US and the establishment of a Strategic Bitcoin Reserve. “Crypto has received possibly the most positive headlines in its history,” he says. Yet, despite such structural shifts, it suffered its worst quarter since 2018. He concludes that this good news is likely overlooked amid the skittish nature of the market.
