The “panic” in the crypto market is fading, now is the time to buy

Dan Morehead, CEO of Pantera Capital, believes that the massive sell-off of cryptocurrencies is slowing down because he believes that “we have seen most of this panic.”

In every month communication The venture capitalist said in a statement on June 14 that the best time to buy is when the market is “far below the trend.” The Bitcoin trend deviation chart supports this claim because it shows that the asset is only so “cheap” relative to the trend of one-fifth of its life cycle.

He also asserted that the year-on-year return does not indicate that Bitcoin is overvalued.

“Year-on-year returns have never really deviated from the chart like in past peak periods. It currently trades at 281%, which seems completely reasonable considering the money printing that took place at that time.”

Morehead went on to explain that the confluence of the three news events caused the market to fall sharply.

Another suppression from China is one of the important factors, but as Morehead pointed out, this has happened many times before.

“Well, let’s take a broader view of the latest “Bitcoin ban” in China. It feels like we have seen the **na** movie before.”

He listed eight independent incidents in which China has banned Bitcoin or cracked down on the industry over the years, and then a chart depicting the huge gains Bitcoin has made.Beijing also has Cracking down on Bitcoin mining business Concerns about energy consumption when striving to achieve carbon neutrality.

related: Signs that Bitcoin hash rate is starting to move away from China

The second reason cited Panther Capital The boss is the US tax day, which traditionally affects the market because investors choose to liquidate part of their holdings to raise funds for their tax bills.

“The previous tax day cycle hit a local low 7 days before the tax day. This makes sense. This is the time it takes to withdraw your money from the exchange and deposit it in the bank.”

The third factor he mentioned is Elon Musk’s 180 against Bitcoin But he did not elaborate on the impact of Tesla’s CEO’s tweets on the market at the time. On May 17, Musk hinted that Tesla might sell some BTC assets because of environmental concerns about energy consumption, which triggered a “Twitter war.”

The crypto asset market has plummeted 43% from its all-time high of US$2.5 trillion in mid-May, and its total market value has shrunk by more than US$1 trillion in the next few weeks. Since the May 24 callback hit its lowest point, the market has been consolidating and is currently about $1.6 trillion.

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