Brutal Bitcoin Bear Markets a Thing of the Past, Says Crypto Investment Giant CEO – But There’s a Catch

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The CEO of crypto investment firm Pantera Capital says that brutal Bitcoin bear markets where BTC plummets over 80% are now a thing of the past.  

In a new edition of the Blockchain Letter, Dan Morehead says that Bitcoin has entered the post-halving era and no longer follows the extreme volatility of previous market cycles. 

 

I believe we are done with the four-year halving cycle – and on to the next price era.  

We’ve updated charts we’ve used since 2014 – showing the major bull and bear markets.  My sense is that we finished the halving cycle in April.  We had a period of temporary insanity – where Chinese mining bans were thought to be negative and a few people had blockchain ESG upside down – and now we’re in a new bull market.

I long advocated that as the market becomes broader, more valuable, and more institutional the amplitude of prices swings will moderate.”

Source: Pantera Capital

According to Morehead, the new price era will usher in bear markets that are milder than the 2014 and 2018 corrective phases.

“While we’ve had two down 83% bear markets already, I believe those are a thing of our primordial past. Future bear markets will be shallower. The previous two have been -61% and -54%.”

Source: Pantera Capital

However, Morehead emphasizes that shallower bear markets come with one catch.

“Unfortunately, there’s no free lunch.  The flipside is we probably won’t see any more of the 100x-in-a-year rallies either. (There’s an amazing coincidence of the numbers -82/3/4% on here). If it ever hits -83% again, I’m going ALL IN.”

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