Is Bitcoin Entering Into A New Bull Run? Pantera Capital Weighs In

Ronaldo Marquez

1 year ago

3 mins read

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After the recently released inflation data, Bitcoin has reacted positively to the upside. Market participants expected an inflation rate of 6.2%, but the US government reported an inflation rate of 6.4%.

Pantera Capital looks at Bitcoin’s current position in a recent newsletter and suggests that the crypto is entering a new bull cycle. So, what signaled the arrival of a seventh bull cycle for BTC?

Is The Seventh Bitcoin Bull Run In Progress?

According to Pantera Capital, over the long-term, Bitcoin has been in a secular uptrend of 2.3x annually over the past twelve years, on average.

According to Pantera Capital, the decline from November 2021 to November 2022 was the median of the typical bear market. The last bear market was the only one to more than completely wipe out the previous bull market gains. In this case, giving back 136% of the previous rally. Pantera Capital states:

Pantera has been through ten years of bitcoin cycles and I’ve traded through 35 years of similar cycles. 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.

Bear Market Frozen?

According to data compiled by Pantera Capital, the median drawdown of the most recent bear market was 307 days, while the previous bear market lasted 376 days. The median drawdown was -73%, and the last bear market ended at -77%.

For Pantera Capital, the beginning of 2023 marks the end of the bear market and the crypto winter that froze the price of Bitcoin and the rest of the crypto assets in the ecosystem. This is where prices start to grind higher, and digital assets have seen the lows, marking the beginning of a new bull market cycle. Pantera Capital concludes:

Blockchain will change the world. Unfortunately, that massive promise causes market participants to go wild – both too bullish at times and too bearish at times. We’ve invested through four “crypto winters” already.

The price of Bitcoin has remained in the green zone after the recent news; it went to $21,500 minutes after the released inflation rates and managed to climb once again to the $22,000 level.

The support line of Bitcoin at the $21,500 level has withstood the news. The market has seen some upside volatility due to speculation by investors on future profits for the BTC/USDT trading pair.

Bitcoin has narrowed the seven-day gap, trading slightly in the red with a -3.5% over the past week. Still, Bitcoin has gained 4.6% in its price in the last 30 days.

Investors in the flagship crypto asset are looking for better news to continue the uptrend that characterized the beginning of 2023. Meanwhile, investors are keeping an eye on the upcoming U.S. Federal Reserve (Fed) meetings in March and May to see if inflation slows and can lead to the seventh bull market for the crypto market.

Featured image from Unsplash, chart from Trading View.

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

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