A prominent cryptocurrency venture capitalist believes the digital asset market is likely to recover around Christmas after a rocky start to September.
Chris Burniske, the founder of Placeholder Capital, tells his 263,400 followers on the social media platform
He is now predicting a crypto Santa Claus rally, a financial term used to describe a calendar effect on traditional stocks that have historically risen on the last five trading days of the year in December and the first two trading days of the new scholarship. year.
“The upside surprise has faded, it seems likely that we will have a puke in September, a Sinterklaas rally, a first interest rate cut in the first half of 2024 that will lead to elections, and although there are risks [assets] will get relief from a change in interest rate and liquidity tides, crypto would benefit immensely from some big election victories.”
According to the crypto investor, the digital asset market will experience price inconstancy but eventually enters a bullish cycle.
“Patience. While markets are fickle, with many variables beyond crypto’s control, building and deploying blockchains is a good thing.”
Burniske also says that a crypto bull cycle is a increase in global market liquidity after it has shrunk, which it probably did cause of the digital asset correction.
“Smaller stories always emerge to explain the markets, but don’t lose sight of the bigger, core drivers.”
The Placeholder director also previously said that retail investors are likely to invest more in the space once crypto markets start showing signs of strength again.
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Generated image: Midjourney