Partner at the Venture Capital firm Placeholder Capital and prominent figure in the crypto community, Chris Burniske, has given an instance where assets like Bitcoin and Ethereum could see a repeat of what happened in mid-2019.
New Highs Before A “Final Wipeout”
In a post shared on his X (formerly Twitter) platform, Burniske mentioned that a repeat of mid-2019 could happen if the top two cryptocurrencies, Bitcoin and Ethereum, were to “rip” from their current levels. If that happens, the crypto founder believes that the broader crypto market could follow suit.
As to how these crypto tokens could go, he noted that they could rise enough to make people believe that they could hit new all-time highs soon, but that may not be the case as these investors could endure a “final wipeout” soon after (possibly in the first quarter of next year) with these tokens steady declining to higher lows.
To drive home his point, Burniske suggested that Bitcoin and Ethereum’s current price action shared similarities to the period between December 2019 and January 2019 before the “painful descent into March 2020 lows.” According to him, although that period was the COVID era, “everything is also the same about the actors on the stage.”
Burniske seemed to be certain about his assertions. In a subsequent post, he warned investors that the rollercoaster “could get extreme” in relation to what he had said earlier and urged them to have their seatbelts on.
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, considering that it could mean that the crypto market and everyone in it could be in more pain, even if a massive rally (as the crypto founder predicts) is likely to happen before that.
A particular X user, however, seemed to agree with his position as he stated that Burniske’s prediction makes so much sense as that is how the “cycle psychology” works, just that this time, it happens to line up “perfectly” with some highly likely macro scenarios. Burniske responded to the post as he agreed that those were the points he was trying to drive home.
One of these macro scenarios, which was alluded to, could be the rising inflation and how the Federal Reserve and other authorities globally are increasing interest rates to battle the economic downturn. Bloomberg analyst Mike McGlone had once mentioned how Bitcoin could crash to $10,000, with inflation being one of the factors that could lead to the decline.
Another crypto analyst, Nicholas Merten, had also noted that Bitcoin could decline further if the Feds do not do enough to curb the rising inflation.
Featured image from The Street, chart from Tradingview.com