According to reports, Adrian Cheng, the wealthy founder of C Capital, plans to raise $500 million over the next 18 months to invest in digital currencies, credit, and private equity. The company believes that the bitcoin market has already bottomed out, therefore this is the ideal moment to get involved.
‘When people are on defense, we are on offense’
As far as we are aware, C Capital Company is a supplier of financial services that focuses on lending to businesses, microfinancing, and credit solutions. The crypto winter, in Ben Cheng's opinion—the company's chief executive officer and president—has begun to lose its hold, making the present climate ideal for new investments that would "return optimum outcomes." When individuals are on defensive, we're on offensive, in contrast to many organisations that now choose to avoid the digital asset market, Cheng added.
In 2023, C Capital intends to launch a $200 million blockchain fund, and to allocate around $300 million to private equity and private credit strategies, according to a report by Bloomberg on September 21.
C Capital has been operating for five years; therefore, it is not a newcomer to the crypto market. While its hedge fund's major concentration is on cryptocurrency trading, it has invested close to $1 billion in digital assets and credits over the last several months. Cheng disclosed that the company turned down other companies' and angel funds' investment in it at a seed stage since such had only marginal advantages.
In its five years of operation, C Capital has made investments in over 60 companies, which, in our opinion, is a significant number. This number includes the well-known blockchain gaming firm Animoca Brands.
Is a Bull Run Necessary?
According to Pantera Capital's chief executive officer, Dan Morehead, "bitcoin is on to the next leg of a rally." We've gone through three significant negative market cycles, but he was unable to predict with certainty when the values of most digital assets will rise. In fact, I believe the market reached its bottom point in June, and the new bull market has begun. I believe we have reached the next stage of a rally, but it may be difficult and take some time. He added.
However, Mark Yusko, CEO of Morgan Creek Capital Management, predicts that the next bull run will start in 2024 and be mostly driven by the halving of BTC.
The bottom line
We do know that there are currently 460 cryptocurrency exchanges, 18,142 cryptocurrencies, and a market capitalization of $1.7 trillion. The majority of the $91 billion worth of cryptocurrency transacted every day is either Bitcoin or Ethereum. It is important to note that following "The Merge," which took place last week, it was anticipated that the cryptocurrency market, and more especially Ether's valuation, would slightly rebound. Nevertheless, because ETH has decreased by almost 20% since the switch to PoS, it became a "sell the news" event.