Pantera Capital CEO says the next Bitcoin price crash will be “shallower” than 80%.

The report suggests that Bitcoin’s price rises will be less dramatic in the future.
According to a new report by Pantera Capital, a California-based hedge fund, the tendency of Bitcoin (BTC), market to crash by more than 80% after logging strong bull run might be over. The report details that recent price drops in Bitcoin (BTC) have been less severe than previous periods. For instance, Bitcoin crashed by 83% in 2013-15 and 2017-18 after hitting $1,111 and $20,000.89, respectively. The cryptocurrency’s bull run of 2019-20 and 2020-2021 caused massive price corrections. However, the price corrections afterward were massive at -61% and 54% respectively. Source: Pantera Capital. Pantera Capital’s chief executive Dan Morehead highlighted the steady decline in selling sentiment following the 2017-18 and 2013-15 bearish cycles. He noted that future bear markets will be “shallower.” He said: “I have long advocated that the market will become more broad, more valuable, more institutionalized, and the amplitude price swings will moderate. These statements were made as Bitcoin reaffirmed its bullishness to retest its record high of $65,000 After years of rejecting similar investment products, Bitcoin/USD rose above $60,000 for first time since May. ProShare’s Bitcoin Strategy ETF approval raised hopes that institutional investors would be able to get exposure in the BTC markets. The approval of ProShare’s Bitcoin Strategy ETF helped Bitcoin erase almost all losses during the April-July bear market. The BTC price doubled to regain levels above $60,000. Bitcoin price cycles throughout history. Source: Pantera CapitalBTC undervalued The first halving resulted in a 15% reduction in the new Bitcoin issuance rate (around 10.5million BTC), which led to a 9,212% BTC price rise. Source: Pantera Capital. The second halving reduced the supply of new Bitcoin by one third of the total outstanding Bitcoins (15.75 millions BTC). It led to a bull run of 2,910%, almost a third of previous one, and had a slightly less impact on Bitcoin price. Source: Pantera Capital. The last halving was made on May 11, 2020. This further reduced the new BTC supply against the circulating supply. Since then, Bitcoin has rallied by more than 720%. “The flip side of that is we probably won’t see any more 100x-in-a year rallies,” added Morehead. You should do your own research before making any investment or trading decision.

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