According to a new report from cryptocurrency hedge fund Pantera Capital, the bitcoin (BTC) price will no longer correct by 80%+ after a long bull run. According to CEO Dan Morehead, we will see less violent price movements in the future.
The bitcoin price corrected by no less than 83% in 2013 and 2017 after a long bull run. In 2019 that was still 61% and in 2021 ‘only’ 55%. Morehead expects this trend to continue in the future.
As the market becomes broader, more valuable, and more institutional, the amplitude of price swings will moderate.
While we’ve had two -83% bear markets already, I believe those are a thing of our primordial past. Future ones will be shallower.
More: https://t.co/g46sxp7Qe6 pic.twitter.com/IAZIYMZ3W8
— Dan Morehead (@dan_pantera) October 16, 2021
“I have long argued that as the market becomes broader, more valuable and more institutional, the magnitude of price swings will diminish.”
Said the Pantera Capital CEO. However, Morehead also believes that we will experience less extreme price increases in the future than before.
“The flip side of that is that we probably won’t see 100x rallies in a year either.”
The BTC price is currently very close with a price of $62,700 all time high (ATH) of $64,800 as of mid-May. The reason for the recent increase is probably related to the circulating supply that is declining at a rapid pace. The so-called halving of bitcoin contributes to this.
Morehead says that the bitcoin price has already risen by 100% in the current bull run, which he says started in July. He points out that the average bull cycle is at x15, so that there is still a lot of room for further growth.
#bitcoin at $61,000 is 2x from where we mark the start of this new bull market in July.
For perspective, the median bull cycle went up 15x over 300 days.
More thoughts on the state of the market here: https://t.co/g46sxp7Qe6 pic.twitter.com/Iy96sJvZzO
— Dan Morehead (@dan_pantera) October 15, 2021
The current price increase may also be driven by expectations about a so-called bitcoin futures exchange traded fund (ETF), or publicly traded fund. The very first bitcoin futures ETF may launch in the US later today. However, it could happen that disappointingly low volume creates selling pressure and pushes the price down.
