Bitcoin'south (BTC) market tendency to crash by over lxxx% subsequently logging stiff balderdash runs might come to an end.

That is according to a new report published past California-based hedge fund Pantera Capital. In detail, the report notes that the recent periods of BTC cost drops have been less severe than in the past.

For instance, in 2022–2015 and 2022–2018, Bitcoin crashed past as much as 83% after topping out near $ane,111 and $20,089, respectively. Similarly, the cryptocurrency's balderdash run in 2022–2020 and 2022–2021 led to massive price corrections. Nonetheless, the scales of their retracements afterward were -61% and -54%, respectively.

Bitcoin balderdash and behave markets beyond its history. Source: Pantera Upper-case letter

Dan Morehead, CEO of Pantera Capital, highlighted the consistent drop in selling sentiment afterward the 2022–2015 and 2022–2018 bearish cycles, noting that time to come bear markets would be "shallower." He explained:

"I long advocated that as the marketplace becomes broader, more valuable, and more institutional the amplitude of prices swings will moderate."

The statements appeared as Bitcoin renewed its bullish strength to retest its current record loftier near $65,000.

BTC/USD rallied higher up $60,000 for the first time since early May as the United States Securities and Exchange Commission canonical the outset Bitcoin exchange-traded fund (ETF) after years of rejecting similar investment products.

The approval of ProShare'southward Bitcoin Strategy ETF raised expectations that it would arrive easier for institutional investors to gain exposure in the BTC market. That also helped Bitcoin wipe near all the losses incurred during the April–July behave cycle equally BTC's toll doubled to reclaim levels above $60,000.

Bitcoin price cycles throughout the history. Source: Pantera Majuscule

BTC undervalued?

It'south becoming increasingly mutual to hear $100,000 valuations as Bitcoin grows to get a mainstream financial nugget, with its start ETF approval seeming to be right effectually the corner.

Related: $200K BTC cost 'programmed' as Bitcoin heads toward 2d RSI peak

Morehead cited the popular stock-to-flow model, which studies the impact of Bitcoin'due south "halving" events on prices, to rule out a similar bullish outlook for the cryptocurrency. He noted that the showtime halving reduced the new Bitcoin issuance rate by fifteen% of the total outstanding supply (around 10.five million BTC), leading to a nine,212% BTC price rally.

Reduction in Bitcoin supply afterwards each halving. Source: Pantera Capital

Similarly, the second halving decreased the supply of new Bitcoin by one-third of the total outstanding Bitcoin (~15.75 1000000 BTC). It led to a 2,910% bull run, almost a third of the previous one, thus showing a lesser touch on on Bitcoin'south toll.

Post-Bitcoin halving rallies. Source: Pantera Upper-case letter

The terminal halving was on May 11, 2022, which further reduced the amount of new BTC against the circulating supply, with Bitcoin rallying by over 720% since.

"The flipside is we probably won't see any more of the 100x-in-a-year rallies either," said Morehead, adding:

"The cycles shown logarithmically make today'due south level await cheap to me."

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