The head of a major American hedge fund thinks the crashes and pumps of Bitcoin (BTC) will be less volatile going forward.
In a new blog post, Pantera Capital CEO Dan Morehead says more institutional ownership of BTC and a higher Bitcoin market value will moderate the top crypto asset’s price swings.
“While we’ve had two -80% 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%.
Unfortunately, there’s no free lunch. The flipside is we probably won’t see the 100x rallies anymore either.”
Morehead argues that the current bear market is finished and Bitcoin has moved on to a new rally cycle.
“The next 6-12 months are likely to see a massive rally as investors flee stock, bond, and real estate markets – for blockchain.”
The CEO also notes that BTC in early April was 56% below the 11-year exponential growth trend, which he says is a “rare” level of cheapness for the Bitcoin market.
Bitcoin is trading at $41,341 at time of writing. BTC is up more than 4% in the past 24 hours but down more than 4% from where it was priced a week ago.
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