Pantera Capital CEO Dan Morehead told investors halvings are growing less important and a more mainstream Bitcoin market will moderate price swings.
As the Bitcoin market expands beyond the cryptocurrency community into the mainstream, the era of halving cycles and huge bull and bear markets is ending, venture capitalist Dan Morehead predicted.
“Each subsequent halving’s impact on price will likely taper off in importance… I believe we are done with the four-year halving cycle – and on to the next price era.”
More broadly, Pantera said he believes Bitcoin’s cycle of highs and lows will no longer be as dramatic. He said:
“I long advocated that as the market becomes broader, more valuable, and more institutional the amplitude of price swings will moderate.”
Sell the Fact
Pantera also noted that the old Wall Street saying “Buy the rumor, sell the fact” was “definitely working in our space.”
“That was the top. One of those -83% bear markets started that day. We recently repeated that cycle. The whole industry reveled in Coinbase’s upcoming direct listing. The Bitcoin market was up 822% coming into the day of the listing. Bitcoin peaked at $64,863 that day and a -53% bear market started.”
“Will someone please remind [me] the day before the Bitcoin ETF officially launches? I might want to take some chips off the table.”
The next day, October 7, the SEC took a baby step, approving the Volt Equity ETF which offers investors to companies that hold more than half their assets in Bitcoin, and those that bring in more than half of their earnings by mining, lending, or transacting in BTC.
But the fate of a Bitcoin futures ETF of physically settled Bitcoin ETF remains to be seen.