Bitcoin (Bitcoin) The market has fallen by more than 80% after the strong bull market may end.
That is based on the new report Released by Pantera Capital, a California-based hedge fund. In detail, the report pointed out that the recent decline in BTC prices has not been as severe as in the past.
For example, in 2013-15 and 2017-18, Bitcoin plummeted by 83% after reaching around US$1,111 and US$20,089, respectively. Similarly, the bull market of cryptocurrencies in 2019-20 and 2020-2021 has led to large-scale price corrections. Nevertheless, their subsequent retracements were -61% and -54%, respectively.
Dan Morehead, CEO of Pantera Capital, emphasized that after the 2013-15 and 2017-18 bear market cycles, selling sentiment continued to decline, and pointed out that future bear markets will be “weaker”. He explained:
“I have long argued that as the market becomes broader, more valuable, and more institutionalized, the magnitude of price fluctuations will slow down.”
These announcements came as Bitcoin regained its bullishness, retesting its current record high of close to $65,000.
Bitcoin/USD Rebounded above $60,000 This is the first Bitcoin exchange-traded fund (ETF) approved by the US Securities and Exchange Commission after years of rejecting similar investment products since the beginning of May.
Approval of ProShare’s Bitcoin Strategy ETF It has raised expectations that this will make it easier for institutional investors to gain exposure in the BTC market. This also helped Bitcoin eliminate almost all losses that occurred during the bear market cycle from April to July, as the price of BTC doubled and returned to a level above $60,000.
Bitcoin is undervalued?
As Bitcoin gradually becomes a mainstream financial asset, it is becoming more and more common to hear a valuation of $100,000 Its first ETF approved.
Morehead cites popular Inventory-to-flow model——Research on Bitcoin”Halved“Price events-excluding similar bullish prospects for cryptocurrencies. He pointed out that the first half reduced the new Bitcoin issuance rate by 15% of the total outstanding supply (approximately 10.5 million BTC), resulting in a unity of BTC prices of 9,212%.
Similarly, the second halving reduced the supply of new bitcoins by a third of the total outstanding bitcoins (approximately 15.75 million bitcoins). It led to 2,910% of the bull market, which is almost one-third of the previous bull market, so it has a small impact on the price of Bitcoin.
The last recorded halving was on May 11, 2020, which further reduced the amount of new BTC relative to the circulating supply. Since then, Bitcoin has risen by more than 720%.
“On the other hand, we may not see a 100-fold rebound in a year,” Morehead said, adding:
The logarithmic display period makes today’s level look cheap to me.
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