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.
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/RomanYa/Sensvector
