The CEO of crypto funding agency Pantera Capital says that brutal Bitcoin bear markets the place BTC plummets over 80% at the moment are a factor of the previous.
In a new version of the Blockchain Letter, Dan Morehead says that Bitcoin has entered the post-halving period and now not follows the excessive volatility of earlier market cycles.
“I imagine we’re finished with the four-year halving cycle – and on to the subsequent worth period.
We’ve up to date charts we’ve used since 2014 – displaying the main 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 mining bans had been considered adverse and a few folks had blockchain ESG the other way up – and now we’re in a new bull market.
I lengthy advocated that as the market turns into broader, extra beneficial, and extra institutional the amplitude of costs swings will average.”
According to Morehead, the new worth period will usher in bear markets which might be milder than the 2014 and 2018 corrective phases.
“While we’ve had two down 83% bear markets already, I imagine these are a factor of our primordial previous. Future bear markets might be shallower. The earlier two have been -61% and -54%.”
However, Morehead emphasizes that shallower bear markets include one catch.
“Unfortunately, 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 an incredible 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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