The lows of Bitcoin and altcoins of this cycle are already behind, said Pantera Capital CEO Dan Morehead. Bitcoin is already in the next bull market cycle, he believes, as he looks to a “year of rebuilding trust.”
Bitcoin is entering its “seventh bull cycle” and investors should not be afraid of crypto after FTX, according to Pantera Capital. In his latest “Blockchain Letter,” dated Feb. 8, wealth management firm CEO Dan Morehead predicted that 2023 will be the “year for rebuilding trust,” reports Cointelegraph.
BTC price action has pulled back slightly after a 40% rise. In January, some market participants still insisted that new macroeconomic lows should appear on crypto assets. While the timing for such a scenario varies, there is still a lack of consensus when it comes to market recovery. However, for Morehead, the time to flip bullish on crypto is already here. “Pantera has been through ten years of Bitcoin cycles and I’ve traded through 35 years of similar cycles,” he noted.
“I believe that blockchain assets have seen the lows and that we’re in the next bull market cycle – regardless of what happens in the interest-rate-sensitive asset classes.”
Morehead argued that Bitcoin's drawdown from recent all-time highs placed the market in a historical context despite falling below its previous bull market all-time high following the November 2022 FTX fiasco.
“The decline from November 2021 to November 2022 was the median of the typical cycle. This is the only bear market to more than completely wipe out the previous bull market. In this case, giving back 136% of the previous rally,” he wrote, alongside accompanying data.
“The median downdraft has been 307 days and the previous bear market was 376. The median drawdown has been a -73% downdraft and the latest bear market ended at -77%.”
Going forward, a trend change will ensue, with Bitcoin on its way to fresh record highs.
“I think we’re done with that and beginning to grind higher,” Morehead added.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.