Bitcoin

Bitcoin has only been ‘cheap’ 20% of the past 11 years


The best time to buy Bitcoin was a few years ago and when it debuted in early 2010. What is the next best time to buy BTC? Now according to Dan Morehead, CEO of Pantera Capital.

In a recent tweet, Moorhead outlined the facts as to why the market is under-trend, making now one of the best times to buy.

Bitcoin below market trend?

What Morehead explains about the price of bitcoin is plain to see. Currently, Bitcoin is trading 36% below its 11-year exponential trend. So, relative to this trend, or the general trend of market price, this has only been “cheap” to buy and under that trend for just over 20% of the past decade plus.

This means that people usually pay more for BTC than they should have been based on price action. For those looking to buy bitcoin at a potential discount, this could be the time because bitcoin isn’t usually under trend in this way.

Even though bitcoin has traded lower after deflation in recent weeks, that doesn’t mean the market isn’t primed for a bounce. Investors should be optimistic that cryptocurrency is currently cheap relative to the trend. This combined with the fact that its return year after year has increased by 281% shows that there should be no concern for crypto investors and those who own any digital assets.

Related reading | BTC Expands Losses, Why $30K Holds the Key to Next Wave

Pantera Capital is the first institutional asset manager in the United States to focus entirely on blockchain technology. Since their first fund in 2013, they have consistently been at the forefront of financing the blockchain business, investing in digital assets.

at Blockchain letter from Pantera Capital on 14/6/2021, They further explain why shareholders are not concerned about recent losses:

It has averaged more than three times a year for ten years. Anyone who has held bitcoin for 3.25 years has made a profit. Bitcoin has only printed one calendar year with a low dip. So, most of these investors have been very successful.

Related reading | BTC Drops From $40K, Here’s Why Uptrend Is Still In BTC

Why is the cryptocurrency market below trend?

Many factors play a role in the reasons why the cryptocurrency market is below the current trend. But the biggest one comes from the massive drop in cryptocurrency prices that took a few weeks. With this drop, many investors were afraid of liquidation and feared that the market could go down completely. The predominant side effect, Bitcoin is trading at a lower price relative to the long-term trend.

If you are thinking of dipping your toe into the cryptocurrency market, there is no better time like today to get a good deal on the bitcoin price relative to its history.

Feature photo by Chronis Yan on Unsplash





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