A top investor at Pantera Capital thinks crypto’s worst days might be over, even with the economy still shaky. Cosmo Jiang believes that while the market has faced tough times, the most intense selling might be behind us.
The Market’s Rough Patch
Jiang acknowledges the recent challenges: “This was a tough quarter, with big economic factors really driving things and making people less willing to take risks. The biggest uncertainty is still around tariffs and how they’ll affect the global economy. Things are still pretty unclear, and people are feeling pretty down about it.” However, he adds that this low sentiment might actually signal the end of the heavy selling.
Crypto Showing Some Strength
Looking at the short term, Jiang sees crypto performing relatively well compared to other investments: “We’re seeing signs that digital assets are doing better in the short term. So far this month, crypto has outperformed stocks and the dollar. Solana and Bitcoin are up while stocks are down. It’s early, but it’s possible that crypto, which was among the first to fall, might also be the first to recover.”
Good News Not Reflected in Prices
Jiang points out that positive developments in the crypto world – like better US regulations and the creation of a Bitcoin reserve – haven’t been reflected in prices. “Crypto had some of its best news ever, a lot of it being big structural changes, and yet it had its worst quarter since 2018. We think the good news isn’t reflected in the price and is being ignored by a nervous market.”
Disclaimer: This is not investment advice. Do your own research before investing in crypto. Investing in crypto is risky, and you could lose money.
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