Venture capitalist Chris Burniske believes crypto is about to enter uncharted territory as the United States welcomes a second Donald Trump presidency.
Burniske tells his 317,600 followers on the social media platform
BTC’s four-year cycle is based on halving events where Bitcoin miner rewards are halved every four years. In the past, halvings have correlated with parabolic rallies for Bitcoin as the reduction in new BTC emissions created an imbalance between supply and demand.
Say Burniske,
“Continue to believe that there is a good chance that we will break the simplistic four-year cycle that BTC has maintained for the past twelve years…
With a supportive US government, crypto could enter a Goldilocks period in the coming years where returns aren’t quite as parabolic, but instead we see steady growth, not to mention the majors are no longer bothered by 85-95% relapse.”
When investing, there is a Goldilocks scenario when an asset class experiences moderate and sustainable growth over a long period of time.
Burniske also predicts that market collapses that crypto investors are accustomed to will likely be in the rearview mirror once digital assets enter Goldilocks territory. He believes that exchange-traded funds (ETFs) will support the steady rise of crypto assets while minimizing market declines.
“About the drawdowns: I’m not saying they’ll stop, I’m saying it’s possible they become less extreme for the majors, which could give whiplash to people who use too much aggression…
I also think BTC and ETH both having ETFs, and perhaps soon SOL+, will provide more consistent buying pressure for these assets.”
While the investor believes in steady growth for large-cap coins, he notes that digital assets can still see heartbreaking corrections, but they are unlikely to be as severe as in the past.
“If you ever want to see what percentage of decline BTC could be exposed to, look at the 200-week SMA (simple moving average), which has been our most reliable technical support every bearish period. Right now at ~$40,000 this suggests a 60% drawdown is possible, which is a far cry from 80%+ (needs to drop another 50% from 60% down, to reach 80%). As BTC rises, the 200-week SMA will also rise.”
Burniske concludes by saying that 2025 will likely be a “great year” for crypto investors.
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