According to a Pantera Capital report, the favorable XRP ruling is a positive black swan that could contribute to the strength of the next bull market.
Market watchers continue to project the potential magnitude of the next bull market.
Amid these projections, a Pantera Capital report recently shared bullish forecasts, noting that the favorable ruling in the Ripple case could contribute to the strength of the next bull run.
Pantera Capital, the largest crypto-focused hedge fund in the world, recently shared a report highlighting market conditions. The report noted several factors that could strengthen the next bull market.
According to the firm, these factors include the Bitcoin (BTC) halving expected in April 2024, the recent endorsements from leading asset manager BlackRock, and the favorable ruling for XRP in the SEC vs. Ripple case.
XRP Ruling: A Positive Black Swan
Enshrined in the report is a conversation between Bloomberg correspondent Carol Massar and Pantera Capital CEO Dan Morehead. Massar had asked Morehead what he thinks the next big black swan event in the crypto scene would be.
Notably, this interview occurred on a Bloomberg Invest panel in June this year. Responding to Massar, Morehead called attention to the legal battle between Ripple and the SEC.
“There’s a three-year lawsuit going on with the SEC and Ripple Labs…. The ruling could drop at any time, and it will definitely drop within the next two or three months,” Morehead remarked.
In addition, Morehead highlighted that there is a 50% chance that Ripple will win. Should this happen, he believes it would represent a significant positive black swan everyone should watch out for.
He said, “That could be the positive black swan that we’re all concerned about. The next ‘shoe to drop’ could be a nice thing.”
Interestingly, former SEC Chairperson Jay Clayton agreed with Morehead’s remarks.
Morehead believes regulatory clarity is the one thing that could represent a positive black swan, and a favorable ruling in the Ripple case is one way such clarity could materialize.
Catalysts of the Next Bull Run
Furthermore, the Pantera Capital report spotlights the next bull market. Citing the elongated market downturn and the length of the previous bear market, the report forecasts that the current bear market could be on the verge of exhaustion.
The market could witness the next bull run when this occurs, as several catalysts set the stage. Regarding these catalysts, the report notes:
“We believe the combination of recent positive events – the XRP ruling and endorsements by BlackRock et al. – in addition to the Bitcoin Halving expected to occur in April 2024, provide a strong setup for the next bull market for digital assets.”
While the report fails to make any price projections for XRP, it makes bullish forecasts for BTC after the 2024 halving. According to the report, Bitcoin could soar to $35,448 before and then to $147,843 after the halving.
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