The King coin has not been in the best of moods lately, especially given its position of extreme volatility over the past few weeks. But despite the constant state of war that Bitcoin (BTC) finds itself in, Dan Morehead, CEO of Pantera Capital, disagreed.
In a recent episode of the Bankless podcast, he explained:
“I think we’re done with the bear market. The next six to 12 months are likely to see massive rallies as investors flee stocks, bonds and real estate to the blockchain.”
Is the bear cycle going weak?
At the time of writing, BTC was trading at $38,015, according to CoinGecko data. The token was down -1.6% over the past 24 hours and down roughly -3.9% over the past seven days. At press time, the Relative Strength Index (RSI) was floating below neutral 50 at a level of 39.19. The Awesome Oscillator (AO) further underpinned the token’s bearish move at press time.
Source: TradingView
Additionally, as of May 1, 2022, the Bitcoin Fear & Greed Index also stood at 22, indicating a sense of “extreme fear” about the token. However, data from Glassnode supports Dan Morehead’s statements.
According to the data chart provided below, “Net Transfer Volume To/From Exchanges” is -3,012.95 BTC at the time of writing. The negative volume shows that token investors are willing to hold on to their investments and not be pressured by the bear cycle just yet.
Source: Glassnode
The future is “Taurus”
Commenting on the performance of BTC and the overall cryptocurrency market, Dan Morehead expressed his amazement at the continued state of all cryptocurrencies. He also addressed the reasons for the ongoing bear market and the correlation between macro news and the cryptocurrency market.
“Bear markets are half the length of bull markets. With the Russian invasion of Ukraine and all the political reactions, it’s hard to know how everything will play out, but when the dust settles, many people will be using crypto,” he explained.
Amid the King token’s ongoing bear run, Willy Woo, a BTC analyst, also shared a tweet supporting the market’s bullish outlook.
BTC price holding up well while stocks are falling and the USD index is rising is a testament to the unprecedented spot buying that is currently taking place.
In other words, investors already see BTC as a safe haven, it will take time for the price to reflect. Wait for the futures sales to run out of ammunition.
— Willy Woo (@woonomic) April 30, 2022
So is BTC the future? Most likely not…
On April 30, 2020, Berkshire Hathaway’s annual shareholder meeting was held, where Warren Buffett once again expressed his view that cryptocurrencies have no value for him. On the volatility of the current market he said:
“Whether it’s going up or down next year, or in five or ten years, I don’t know. But I’m pretty sure it doesn’t produce anything.”
Holding a $20 bill, he also said:
“To have value, assets must provide something to someone. We can put up Berkshire coins… but at the end of the day it’s money. And there’s no reason on earth the United States government will… replace their money with Berkshire.”
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