Dan Morehead, the chief financial officer and founder of the first United States institutional asset management firm, Pantera Capital, and former Tiger Management Head of Macro Trading, believes that the bear market is over.
Amid the recent SEC attacks on several crypto companies and projects including Kraken exchange and Paxos-issued stablecoin (BUSD), the earliest hedge and venture funds founder is confident the next bull cycle is here.
In a recent Newsletter titled ‘The Seventh Bull Cycle,’ Dan Morehead alongside two other crypto and blockchain technology experts Ryan Barney, and Sehaj Singh, shared their bullish expectations for the crypto market.
Ryan Barney, a senior investment associate at Pantera reflected on centralized finance and software in the newsletter. According to him, 2023 will be the year for rebuilding trust in centralized finance (CeFi). Recall that trust for CEXes dropped drastically last year following the failure many of them recorded, including FTX.
Analyzing the bitcoin (BTC) price cycle, Pantera Capital CFO disclosed that the hedge fund has invested through four crypto winters already. More so, Morehead added that in the last 12 years, BTC price has been in a secular uptrend of 2.3x annually.
Hence, the firm which has roughly $4.1 billion worth of assets under its management at press time, and has been investing through the six bear cycles, believes the seventh bull cycle is here.
Pantera Capital’s founder wrote:
“Pantera has been through 10 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.
“The decline from November 2021 to November 2022 was the median of the typical cycle. This is the only bear market to more than completely wipe out the previous bull market. In this case, giving back 136% of the previous rally…
“I think we’re done with that and beginning to grind higher. 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 would be the seventh bull cycle, after six bear cycles. (Pantera’s been investing through twelve of the thirteen moves.”
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