The CEO of crypto funding agency Pantera Capital says that brutal Bitcoin bear markets the place BTC plummets over 80% are actually a factor of the previous.
In a brand new version of the Blockchain Letter, Dan Morehead says that Bitcoin has entered the post-halving period and not follows the acute volatility of earlier market cycles.
“I consider we’re carried out with the four-year halving cycle – and on to the following worth period.
We’ve up to date charts we’ve used since 2014 – exhibiting the most important bull and bear markets. My sense is that we completed the halving cycle in April. We had a interval of non permanent madness – the place Chinese language mining bans had been considered unfavourable and some individuals had blockchain ESG the other way up – and now we’re in a brand new bull market.
I lengthy advocated that because the market turns into broader, extra worthwhile, and extra institutional the amplitude of costs swings will average.”
In response to Morehead, the brand new worth period will usher in bear markets which are milder than the 2014 and 2018 corrective phases.
“Whereas we’ve had two down 83% bear markets already, I consider these are a factor of our primordial previous. Future bear markets will probably be shallower. The earlier two have been -61% and -54%.”
Nonetheless, Morehead emphasizes that shallower bear markets include one catch.
“Sadly, there’s no free lunch. The flipside is we most likely gained’t see any extra of the 100x-in-a-year rallies both. (There’s a tremendous coincidence of the numbers -82/3/4% on right here). If it ever hits -83% once more, I’m going ALL IN.”
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