Pantera Capital Says Bitcoin Has Already Started Its Next Bull Run• February 11, 2023 10:32 pm • Comments
The CEO of Pantera Capital, Dan Morehead, just made the prediction that 2023 would be a year where Bitcoin may potentially enter its 7th bull cycle.
This is quite the optimistic view given that the industry has gone through a lot of lows last year with many firms being affected by the bear market.
Morehead states that trust will slowly be regained this year as the lowest of lows have already been reached which means that things can only get better from here.
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There are still a lot of macroeconomic factors that could affect the crypto market such as inflation concerns as well as geopolitical wars.
With that being said, Morehead says that he is not worried about that as there are already many signs that indicate that the next bull market cycle has already started.
Pantera Capital CEO Dan Morehead believes we're in the 7th bull cycle for #Bitcoin & 2023 will be a year of rebuilding trust. Market dip seen as normal within historical context. Expect a trend change towards fresh record highs. Optimistic about #DeFi pic.twitter.com/qmN0arbKvN
— Cristian Andrei (@CBabusi) February 11, 2023
“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.”
That perspective differs from the majority in casting aside the debate over crypto price correlation with risk assets such as equities. As Cointelegraph continues to report, this forms the backbone of some other prognoses for 2023.
Morehead argued that the drawdown from Bitcoin’s latest all-time highs had placed the market well within the historical context, despite dipping below its previous bull market all-time high after the FTX debacle in November 2022.
One helpful thing to look at to understand if the next bull cycle will start soon is to look at the previous bull cycle and see what was the percentage that it dropped from its all time high.
Using that information, an investor could apply that same logic to the most recent high and get a rough estimate on where Bitcoin is in the current cycle.
So far, Morehead also shared that the previous bear market had wiped out most of the gains from the previous bull run which is the first time that had happened in all of Bitcoin’s bear markets.
As a result, the next bull run will likely make up for all of those losses and surpass the previous high by quite a margin.
One thing that still does remain certain is how the industry will handle the regulatory actions that may be coming as a result of all the events that happened last year.
The Next Bull Market Cycle for Bitcoin and Altcoins is Here, Says Pantera Capital CEO https://t.co/ifnVcwdSqn
— Micro Venture Group (MVG) (@MVG_MicroEx) February 12, 2023
“2022 was a year of booms and major busts, especially as it pertains to CeFi. In the span of a few months, the world saw Three Arrows Capital collapse, Do Kwon’s LUNA disintegrate, Voyager Digital go bankrupt, and Sam Bankman-Fried’s (SBF) FTX empire shatter,” he explained.
“What did all these events have in common? The headlines like to suggest that it was crypto or Web3 that failed. But, in fact, it was a combination of bad actors skirting lines in jurisdictions without clear regulations.
If 2022 was the year of breaking rules and failing, I believe 2023 is the year that entities instead follow the rules and enjoy the rewards of doing so.”
While the letter did not mention the current regulatory battle involving the United States Securities and Exchange Commission, it foresaw CeFi reclaiming its clout worldwide “on a jurisdiction-by-jurisdiction level.”
Pantera Capital, a $4.8 billion hedge fund under management, says bitcoin is already in its next bull cycle. pic.twitter.com/L99LncW4ZR
— RosalinaRowand (@Rosalina10003) February 11, 2023
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