Crypto-focused investment firm Pantera Capital says bitcoin has seen its lows and “we are in the next bull market cycle.” Dan Morehead, Founder and Managing Partner of the firm, said, “Over the long term, the price of bitcoin has followed a secular uptrend of 2.3 times per year over the past twelve years, on average.
Pantera Capital in the next bull market
Pantera Capital released its February Blockchain Letter last week. The letter, titled “The Seventh Bull Cycle,” is written by founder and managing partner Dan Morehead and investment associates Ryan Barney and Sehaj Singh. Pantera Capital is an investment company specializing in cryptocurrencies, digital assets and blockchain technology.
Referencing his analysis of bitcoin price cycles in the letter, Morehead tweeted on Thursday:
I believe that blockchain assets (using bitcoin as an indicator) have seen lows and we are in the next bull market cycle – regardless of what happens in interest rate sensitive asset classes.
“This would be the seventh bull cycle, after six bear cycles,” he noted. Morehead explained in the letter that Pantera has gone through 10 years of bitcoin cycles and has traded for 35 years of similar cycles.
The Pantera Capital founder pointed out that the BTC the price decline from November 2021 to November 2022 was “the median of the typical cycle”. He added: “This is the only bear market to have more than completely erased the previous bull market. In this case, giving back 136% of the previous rally.
“The median bear market was 307 days and the previous bear market was 376. The median drawdown was -73% and the last bear market ended at -77%,” Morehead continued. “I think we’re done with that and starting to climb higher.”
Morehead further noted:
Over the long term, the price of bitcoin has followed a secular uptrend of 2.3 times per year over the past twelve years, on average.
Do you agree with Pantera Capital founder Dan Morehead that we are already in a bull market cycle? Let us know in the comments section below.
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