Partner at the Venture capital firm Placeholder Capital and prominent figure in the crypto community, Chris Burniskehas provided an example where assets like Bitcoin and Ethereum could see a repeat of what happened in mid-2019.
New Highs Before “Final Extermination”
In a after shared on his X platform (formerly Twitter), Burniske said a repeat of mid-2019 could happen if the two largest cryptocurrencies, Bitcoin And Ethereum, would ‘rip’ from their current levels. If that happens, the crypto founder believes it will be broader The crypto market could follow suit.
As for how these crypto tokens could go, he noted that they could rise enough to make people believe they could reach new all-time highs soon, but that may not be the case as these investors face a “final wipeout” shortly afterward. could endure. (possibly in the first quarter of next year) with these tokens steadily falling to higher lows.
To emphasize his point, Burniske suggested that The current price action of Bitcoin and Ethereum shared similarities with the period between December 2019 and January 2019 before the ‘painful descent to the low point of March 2020’. According to him, although that period is the COVID era, “everything is also the same about the actors on stage.”
Burniske seemed confident in his claims. In a sequel afterhe warned investors that the roller coaster “could get extreme” in relation to what he had previously said and urged them to fasten their seat belts.
ETH price sitting at $1,844 | Source: ETHUSD on Tradingview.com
Market cycle and macro factors affecting Bitcoin and Ethereum
Many didn’t seem to react well to Burniske’s projections, as this could mean that the crypto market and everyone who is part of it could suffer more pain, even though there will likely be a huge rally before that (as the cryptocurrency founder predicts).
However, a certain X user seemed to agree with his stance as he declared that Burniske’s prediction makes so much sense, because that is how the “cycle psychology” works, only this time it matches ‘perfectly’ some very likely macro scenarios. Burniske responded to the post and agreed that these were the points he was trying to drive home.
One of these macro scenarios hinted at could be rising inflation and the way the Federal Reserve and other authorities around the world are raising interest rates to deal with the economic downturn. Bloomberg analyst Mike McGlone did ever mentioned how Bitcoin could crash to $10,000, with inflation being one of the factors leading to the decline.
Another crypto analyst, Nicholas Merten, had done just that noted that Bitcoin could fall further if the Fed doesn’t do enough to curb rising inflation.
Featured image of The Street, chart from Tradingview.com