Cosmo Jiang, a partner at Pantera Capital, provided insights into the crypto market despite a significant correction. After Bitcoin 
$106,738 achieved its all-time high, the subsequent decline triggered varied opinions regarding the market’s future. Jiang expressed optimism about potential recovery in the sector, suggesting that despite recent setbacks, the market holds promise for eventual stabilization.
Pantera Capital’s Take on Cryptocurrency
Jiang highlighted that global economic uncertainty and tariffs have posed challenges to the market. He remarked that the previous quarter witnessed a reduction in risk appetite influenced by major macroeconomic forces. Current low sentiment indicators suggest that the most intense selling phase might be over.
“The last quarter was difficult due to major macro forces,” stated Jiang. “Tariffs and global economic uncertainties reduced risk appetite. Historically low sentiment indicators point to the most aggressive selling point being past.” This observation infers a cautious optimism for upcoming market stability.
Short-Term Prognosis of Cryptocurrencies
In the short term, cryptocurrencies have exhibited stronger performance compared to other asset types. Data from April revealed that cryptocurrencies outperformed stocks and the dollar, with notable gains in Solana 
$168 and Bitcoin asserting resilience in a challenging economic environment.
Cosmo Jiang observed, “Signs of superior performance in crypto assets emerged. April data favored crypto over stocks and the dollar. Solana and Bitcoin rose, while other assets declined.”
Jiang also mentioned that current crypto prices do not fully reflect the positive developments such as the more favorable regulatory climate in the United States and strategic Bitcoin reserves. This implies that the market has yet to integrate these positive news fully into pricing.
Technological advancements and regulatory improvements are seen as positive indicators for the sector’s future. Despite macroeconomic challenges and global uncertainties, a short-term recovery trend appears to be gaining momentum.
Cosmo Jiang stressed that the crypto market, despite receiving the best headlines, has faced its most challenging period since 2018. This suggests that the positive developments have not yet fully impacted prices.
“The market received the best news,” Jiang said, “structural changes took place, but it’s seen the worst performance since 2018. It’s obvious the good news hasn’t reflected on prices.” This indicates potential for growth once these factors are priced in.
Market assessments indicate that digital assets have a chance for short-term recovery despite economic uncertainties and regulatory developments. These conditions suggest a potential for the sector to regain stability, serving as significant indicators for investors to monitor closely.
