Next Bitcoin price crash might seem shallower than 80%
The bitcoin market’s trend to crash after exceeding 80% might come to an end. This is information based on a new report issued by Pantera Capital, a California-based hedge fund. In particular, the report said that the recent price drops of BTC seemed less severe than in the past few years.
For example, between 2013 and 2015 and between 2017 and 2018, Bitcoin crashed by around 84% after reaching near $1,110 and $20,088. A similar scenario happened to the cryptocurrency’s bull run between 2019 and 2020 and 2020 and 2021, leading to extensive price changes.
Although, the scales afterward were -62% and -55%.
The chief executive at Pantera Capital, Dan Morehead, highlighted the steady drop in exchanging sentiment after the years between 2013 and 2015 and 2017 and 2018 cycles, adding that noting would be shallower than this. He explained that as the market becomes more extensive, the amplitude of prices fluctuations would moderate.
The statements appeared after Bitcoin resumed its optimistic strength to reach its record high near $65,500.
For the first time since May, BTC/USD surged above $61,000 as the U.S. Securities and Exchange Commission allowed the first Bitcoin ETF after years of denying related investment products. ProShare’s Bitcoin exchange-traded fund strategy’s approval boosted expectations to make it simpler for institutional investors to get exposure in the BTC market. That also supported Bitcoin to clear almost all the losses provoked during the previous bear cycle when the BTC price increased to improve levels above $61,000.
After its first ETF approval, Bitcoin becomes a mainstream financial asset. Therefore, it’s becoming more prevalent to hear $100,000 valuations.
Morehead mentioned the famous stock-to-flow model. It studies the influence of Bitcoin’s events on prices. It is to rule out a similarly optimistic outlook for the crypto.
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