Dan Morehead: The crypto market has passed the peak of the crisis and will soon reach the bottom

The CEO of the Pantera Capital crypto fund believes that the start of the liquidation of debtors' assets will accelerate the fall of the crypto market, and then growth will begin. Dan Morehead stated in an interview that the digital asset market has nearly bottomed out. 

The largest of the defaults occurred in May and June, when the load on the system reached its peak.

"I think we are really close to the end of the market crisis. Thanks to leverage, especially with smart contracts in DeFi, everything sells out pretty quickly. The market has been falling for eight months now. We observed the most severe manifestations of the crisis in November, May and June. There are companies that are in the process of liquidation in bankruptcy court. We seem to have seen everything we should have," 

Dan Morehead said.

The head of Pantera Capital noted that even during the peaks of the crisis, almost all decentralized finance (DeFi) protocols worked effectively, and centralized crypto lenders failed.  

"There are many skeptics regarding blockchain, and many of them promote the view that DeFi has failed. In reality, this is not so. Of course, there are some failures in the blockchain ecosystem, but almost all of them are related to centralized counterparty lending. Which, as you know, are actually banks. Some of these organizations took short-term deposits and acted like banks. Basically, it's the centralized lending companies that have failed, and almost all DeFi protocols have performed very well," 

noted Morehead

Bobur Muydinov, head of business development at Dvision Network, disagrees with a similar opinion, who believes that the crypto winter may last until the next Bitcoin halving in 2024.