Bitcoin is already in its ‘subsequent bull market cycle’ — Pantera Capital

BItcoin (BTC) is starting its “seventh bull cycle” and buyers shouldn’t be frightened of crypto post-FTX, Pantera Capital believes.

In its newest “Blockchain Letter” on Feb. 8, the asset administration agency’s CEO, Dan Morehead, predicted that 2023 can be a “yr for rebuilding belief.”

Morehead: Cryptoassets have “seen the lows” this cycle

With BTC value motion retracing barely after gaining 40% in January, some market individuals nonetheless insist that new macro lows are due throughout crypto property.

Whereas the timing for such a situation varies, consensus stays absent on the subject of how the market will rebound.

For Morehead, nevertheless, the time to flip bullish on crypto is already right here.

“Pantera has been by way of ten years of bitcoin cycles and I’ve traded by way of 35 years of comparable cycles,” he famous.

“I consider that blockchain property have seen the lows and that we’re within the subsequent bull market cycle – no matter what occurs within the interest-rate-sensitive asset courses.”

That perspective differs from the bulk in casting apart the controversy over crypto value correlation with danger property corresponding to equities. This, as Cointelegraph continues to report, varieties the spine of another prognoses for 2023.

Morehead argued that the drawdown from Bitcoin’s newest all-time highs has positioned the market effectively inside historic context, regardless of dipping under its earlier bull market all-time excessive after the FTX debacle started.

“The decline from November 2021 to November 2022 was the median of the everyday cycle. That is the one bear market to greater than utterly wipe out the earlier bull market. On this case giving again 136% of the earlier rally,” he wrote alongside accompanying information.

“The median downdraft has been 307 days and the earlier bear market was 376. The median drawdown has been a -73% downdraft and the most recent bear market ended at -77%.”

Going ahead, a pattern change will ensue, with Bitcoin on its strategy to contemporary document highs.

“I believe we’re executed with that and starting to grind greater,” Morehead added.

Bitcoin value cycles chart (screenshot). Supply: Pantera Capital

A “jurisdiction-by-jurisdiction” restoration

Comparable optimism was in the meantime directed on the DeFi area, with Pantera nonetheless positioning for a yr of “rebuilding belief” in centralized finance (CeFi) at the start.

Associated: Bitcoin value faucets 3-week lows as SEC fears liquidate $250M of crypto longs

This could be vital, Morehead claimed, in gentle of final yr’s a number of company failures, which precipitated the crypto bear market.

“2022 was a yr of booms and main busts, particularly because it pertains to CeFi. Within the span of some months, the world noticed Three Arrows Capital collapse, Do Kwon’s LUNA disintegrate, Voyager Digital go bankrupt, and Sam Bankman-Fried’s (SBF) FTX empire shatter,” he defined.

“What did all these occasions have in widespread? The headlines prefer to counsel that it was crypto or Web3 that failed. However, in reality, it was a mix of unhealthy actors skirting traces in jurisdictions with out clear laws. If 2022 was the yr of breaking guidelines and failing, I consider 2023 is the yr that entities as a substitute comply with the principles and benefit from the rewards of doing so.”

Whereas the Letter didn’t point out the present regulatory battle involving america Securities and Alternate Fee (SEC), it foresaw CeFi reclaiming its clout worldwide “on a jurisdiction-by-jurisdiction stage.”

The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially mirror or signify the views and opinions of Cointelegraph.