The best time to buy Bitcoin was a couple of years ago and when it first launched in the early 2010s. Next best time to buy BTC? According to Dan Morehead, CEO of Pantera Capital, at the moment.
In a recent tweet, Morehead set out the facts as to why the market is below trend, which is now one of the best times to buy.
For new investors, it is best to buy when the market is well below trend. Now is one of those times. #Bitcoin was just so “cheap” compared to its 20.3% trend over the past 11 years.
Further perspectives on market timing in our investor letter from June: https://t.co/AOvhFyxBJh pic.twitter.com/2bsxbw5Iay
– Dan Morehead (@dan_pantera) June 16, 2021
Bitcoin Below Market Trend?
What Morehead explains about the price of Bitcoin is clear to see. Right now, Bitcoin is trading 36% below its 11-year exponential trend. So in relation to this trend or the general direction of the market price, it has only been a little over 20% of the last decade and more so “cheap” to buy and below trend.
This means that people usually pay more for BTC than they should have paid based on the price movement. For those looking to buy Bitcoin at a potential discount, now may be that time because Bitcoin is usually not trending that way.
Although Bitcoin has been trading at a lower price after the downturn in recent weeks, that doesn’t mean the market isn’t ready for a rebound. Investors should be optimistic that the cryptocurrency is cheap compared to the trend right now. That, along with the fact that the yield is up 281% year over year, shows that crypto investors and those who hold digital assets shouldn’t worry.
Related reading | BTC extends losses why $ 30,000 is key to the next wave
Pantera Capital is the first US-based institutional asset manager to focus entirely on blockchain technology. Since their first fund in 2013, they have consistently been at the forefront of blockchain company funding and investing in digital assets.
In Pantera Capital’s blockchain letter dated June 14, 2021, they further explain the reasons why owners shouldn’t worry about the latest losses:
It has more than tripled on average over the past ten years. Anyone who has held Bitcoin for 3.25 years has made money. Bitcoin only printed one calendar year with a lower low. So, by and large, most of these investors are.
Related reading | BTC is down from $ 40,000, so the uptrend in BTC is still intact
Why is the crypto market below trend?
Many factors play a role in why the crypto market is currently below trend. But the biggest one comes from the big drop in crypto prices a few weeks ago. With this decline, many investors feared liquidation and feared that the market could bottom out completely. The predominant side effect is that Bitcoin is trading at a lower price compared to its decade-long trend.
If you’re thinking about dipping your toe into the cryptocurrency market, there is no better time than today to get a good deal on the price of Bitcoin compared to its history.
Feature photo by Chronis Yan on Unsplash