Bitcoin’s Yearly Loss Streak Nearing End, Predicts Pantera Capital Founder

The longest period of negative year-over-year returns for Bitcoin (BTC) occurred throughout the summer, according to a recent analysis by Pantera Capital founder Dan Morehead, who is nonetheless upbeat about the future potential of the digital currency.

Morehead expressed certainty that the current era of Bitcoin’s negative year-over-year returns would end soon. He claimed that “markets can only be down for so long,” implying that a turnaround is imminent.

Morehead claims that as of June 12th, Bitcoin had experienced the longest stretch in its history of 15 months with negative year-over-year returns. The time frame started on February 8, 2022. The longest stretch of negative returns up until this point had lasted less than a year, from November 14, 2014, to October 31, 2015.

As of the time of this report, Bitcoin was astonishingly up more than 20% year-over-year, despite a recent decline in its price from nearly $30,000.

Morehead outlined a number of potential triggers that would help Bitcoin recover. He referred to the favorable court decision about the XRP coin for Ripple Labs, which is still in effect, from July. Furthermore, support from industry heavyweights in asset management like BlackRock and Fidelity in the form of spot Bitcoin ETF applications continues to be encouraging for the market.

Morehead also disputed the notion that the market has already taken into account the upcoming Bitcoin block reward halving in April 2024, asserting that if demand stays the same and supply is cut in half, the price will inevitably increase. His calculations predict that Bitcoin could have reached its bottom in late 2021, that price will halve in 2024, and that it will reach nearly $150,000 by the end of 2025.

According to current developments, Bitcoin was able to retake the $26,000 mark on Wednesday as interest rates significantly dropped as a result of subpar economic data from Europe. The Nasdaq Composite and other U.S. market indexes showed solid advances as well.

All eyes will be on Federal Reserve Chairman Jay Powell’s keynote address at the Jackson Hole Symposium on Friday at the Kansas City Fed. Even though this event has occasionally served as a platform for significant policy announcements, it is currently anticipated that Powell will maintain a status quo message, reiterating the Fed’s commitment to keeping inflation under control and highlighting the importance of data-dependent decision-making when making monetary policy adjustments.