In January, Pantera sends a firm bullish signal on Ethereum, which has tripled in value! Pantera's letter to investors: The market is re-evaluating Ethereum.

Pantera releases its routine monthly investor letter, discussing not only the bullish outlook on Bitcoin and Ethereum but also questioning whether Bitcoin, which has already multiplied in value, is still at a "fair value." It also provides price predictions and summarizes the key points.

Original article: "All-In-One" Blockchain Fund

CeFi vs. DeFi

The influence of CeFi institutions is declining, with Ethereum's market capitalization now second only to JPMorgan and surpassing all other banks. Pantera points out that at the current growth rate, Ethereum's market capitalization will surpass JPMorgan before June.

Wall Street Bitcoin Skeptics

Pantera CEO Dan Morehead claims he tries to avoid looking at Wall Street's research on Bitcoin as most of it gives him a headache.

However, while reviewing content related to Bitcoin's "Environmental, Social, and Corporate Governance (ESG)," he came across a research report from Wall Street with a title that encapsulates his least favorite argument:

"There is no reason to own Bitcoin unless the price goes up."

Previously reported to be produced by a U.S. bank under the title "Bitcoin's Dirty Little Secrets," Dan Morehead's statement refers to a secondary argument. He points out:

Assuming the author ignores Bitcoin's incredible potential, adheres strictly to financial discipline, why hold Bitcoin when it's rising? I will readily admit, one of the reasons I hold Bitcoin is because I think it will rise, and another reason is that it will significantly improve the lives of 3.5 billion people.

Dan emphasizes that he will continue to be bullish on the blockchain space until such negative arguments disappear.

Ethereum - Ascending to Deflationary Assets

Pantera has previously been bullish on Ethereum, Polkadot, and DeFi projects. Dan points out that the current price is just the market's reevaluation of Ethereum's EIP 1559 and the transition to proof of stake, marking a new beginning.

He believes these two updates will make Ethereum a deflationary asset, with each block representing "negative issuance" of Ether, making it more deflationary than BTC.

Summary: Ethereum's market cap/Bitcoin's market cap will continue to rise, outperforming Bitcoin.

Bitcoin at "Fair Value"

Disruptive innovations like Apple, Amazon, and Bitcoin often appear to have crazy growth on charts, but Dan believes this is steady growth. Bitcoin has maintained a compound annual growth rate of 230% over the past decade. Applying regression models, Bitcoin's ten-year regression value is $55,350.

Dan states that many people ask if now is a good buying point, which relates to fair value, with some points being cheap and, of course, more expensive ones.

Interesting Perspectives

In 2013, Bitcoin was 1,678% above the current regression model high point of fair value; in 2017, the high and low points were at 667% and 60%, respectively.

The gap between the two is 1,477 days. If this cycle is applied to the present, Bitcoin will reach $370,554 on New Year's Day in 2022. Dan emphasizes that this is not a prediction, just an interesting perspective.

In reality, retail investors always anticipate and fear injury from Pantera's sky-high predictions, but in their January investor letter, they firmly held a bullish view on Ethereum, at around $1,200 at the time, and reiterated that Bitcoin would reach six figures in August. Now, Ether has reached the $4,000 level, adding credibility to their predictions.