Pantera Capital: The brutal bear market is behind us—only mild bear markets lie ahead
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Pantera Capital: The brutal bear market is behind us—only mild bear markets lie ahead
The brutal bear market where BTC plummeted over 80% is now in the past. Bitcoin has entered the post-halving era and no longer follows the extreme volatility of previous market cycles.
Navigating Web3 tides with focused insightsIn a new edition of the Blockchain Letter, Dan Morehead, CEO of cryptocurrency investment firm Pantera Capital, said that the brutal bear markets with over 80% BTC declines are now behind us, and Bitcoin has entered the halving era, no longer following the extreme volatility of previous market cycles.
"I believe we've completed the four-year halving cycle—and entered a new price era.
We've updated our chart that we've used since 2014, showing major bull and bear markets. My sense is that we completed the halving cycle in April. We had a period of craziness—the mining ban in China was seen as negative, some flipped on blockchain ESG issues—but now we're in a new bull market.
I've long argued that as the market becomes broader, more valuable, and more institutionalized, the magnitude of price volatility will slow down."
According to Morehead, this new price era will bring milder bear markets compared to the correction phases of 2014 and 2018.
"While we've experienced two bear markets with 83% drawdowns, I believe those are now part of our primitive past. Future bear markets will be shallower. The last two were -61% and -54%."
However, Morehead emphasized that shallower bear markets come with a trade-off.
"Unfortunately, there's no free lunch. Conversely, we may not see any more 100x rebounds within a single year either. If it drops by -83% again, I'd go ALL IN."
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