Cryptocurrency investment firm Pantera Capital CEO and co-CIO Dan Morehead has revealed he believes that as the cryptocurrency market becomes broader and more valuable the “amplitude of price swings will moderate,” although he sees a “massive rally” in the next 6-12 months.

In a note shared with investors, Morehead wrote that while Bitcoin ($BTC) has had two major bear markets with an 80% drawdown, he believes these are “a thing of our primordial past,” and sees future bear markets being “shallower.” As an example, he pointed to the previous two, in which BTC dropped 61% and 54%.

Morehead added that the “flipside is we probably won’t see the 100x rallies any more either.” Per his words, we’re now entering a new BTC rally cycle that could see the flagship cryptocurency’s price surge as investors flee stocks, bonds, and real estate. He wrote:

I think we’re done with the bear market -50% and we’re on to a new rally cycle.  The next 6-12 months are likely to see a massive rally as investors flee stock, bond, and real estate markets – for blockchain.

The CEO also added that the price of Bitcoin has dropped 56% from its 11-year exponential growth trend, which means that the “markets have rarely been so cheap relative to the trend.”

As reported, last month Morehead revealed he expects the price of Bitcoin to 10x in the next five years, which would put the cryptocurrency in range to reach $400,000 per coin. He noted that institutional investors are now “really investing in the space.”

Earlier, the CEO said he is “actually wildly bullish” on Bitcoin as he believes “that the markets will decouple. I think stocks and bonds may keep going down potentially for years, whereas blockchain assets can go up.“

Other popular investors are bullish on BTC as well. Kevin O’Leary, a celebrity investor known as “Mr. Wonderful” on ABC TV series “Shark Tank,” has recently revealed what percentage of his entire portfolio is allocated to the cryptocurrency space, months after explaining he sees Bitcoin ($BTC) move to $300,000.

O’Leary revealed he does not see the price of the flagship cryptocurrency tumble to zero in the future, as BTC is now seen as a store of value the same way gold is. As such, he has allocated 5% of his portfolio into the precious metal and to the cryptocurrency.

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Featured image via Pixabay