Bitcoin (BTC) market trends break off over 80% after strong bulls could end. Pantera.

This emerges from a new report by the Californian hedge fund Pantera Capital. In particular, the report notes that BTC’s recent downturns have been less severe than in the past.

For example, Bitcoin fell as much as 83% in 2013-15 and 2017-18 after hitting $ 1,111 and $ 20,089, respectively. Similarly, the bull run of the cryptocurrency resulted in major price corrections in 2019-20 and 2020-2021. However, their retracement rates were then -61% and -54%, respectively.

Dan Morehead, Managing Director at Pantera Capital, highlighted the continued decline in sales sentiment after the 2013-15 and 2017-18 bear cycles, noting that future bear markets will be “flat”. He explained:

“I have long been advocating that price fluctuations will subside as markets become larger, more valuable and more institutionalized.”

The claims come as Bitcoin renews its bullish strength to retest its current record high of $ 65,000.

BTC / USD surges above $ 60,000 for the first time since early May as the US Securities and Exchange Commission approves its first Bitcoin Exchange Traded Fund (ETF) in years and rejects similar investment products.

ProShare’s approval of the Bitcoin Strategic ETF has raised expectations that it will make it easier for institutional investors to access the BTC market. It also helped Bitcoin wipe out almost all of the losses incurred during the April-July bear cycle when the BTC price doubled and climbed back over $ 60,000.

 

Undervalued BTC?

A valuation of $ 100,000 is becoming increasingly common as Bitcoin becomes a mainstream financial stock after the first ETF is approved.

Related: $ 200,000 BTC Price ‘Programmed’ as Bitcoin Heads for 2nd RSI Peak

Morehead cited a popular stock-to-flow model – which examines the impact of Bitcoin’s “halving” events on price to rule out a similar bullish outlook for the cryptocurrency. He found that the first halving reduced the rate of new Bitcoin spending by 15% of the total outstanding supply (about 10.5 million BTC), resulting in a 9.212% BTC price rally.

 

The second halving also reduced the supply of new bitcoins by a third of all bitcoins in circulation (~ 15.75 million BTC). It resulted in a 2,910% rally, almost a third from the previous one, showing a slightly smaller impact on Bitcoin price.

 

The last halving was recorded on May 11, 2020, further reducing the amount of new BTC on circulating supply, with Bitcoin increasing by more than 720% since then.

“The downside is that we probably won’t see 100 more protests in a year,” Morehead said.

Logarithmic cycles make today’s level seem cheap.

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