The head of a major American hedge fund thinks Bitcoin (BTC) ups and downs will be less volatile in the future.
Pantera Capital CEO Dan Morehead says in a new blog post that the biggest crypto asset will soften price volatility if more institutional ownership comes to BTC and a higher Bitcoin market cap.
“Although we already have two 80% bear markets, I believe they belong to our primitive past. Future bear markets will be shallower. The previous two were -61% and -54. Unfortunately, there is no free lunch. On the other hand, we probably won’t see 100x rallies anymore either.”
Morehead argues that the current bear market is over and Bitcoin has entered a new rally cycle.
“There will be a massive rally in the next 6-12 months as investors flee the stock, bond and real estate markets for blockchain.”
The CEO also notes that as early as April, BTC is 56% below its 11-year exponential growth trend, which he says is a “rare” level of cheapness for the Bitcoin market.
Bitcoin is trading at $41,200 at the time of writing. BTC is up more than 2% in the last 24 hours.
