An investor who correctly called the 2022 crypto bottom is predicting that the crypto market will collapse one more time before a bull cycle starts.
Chris Burniske, a partner at the venture capital firm Placeholder, tells his 262,300 Twitter followers to expect a decline of up to 40% in crypto assets before an enduring bull run begins sometime in 2024.
“Da bears prob get one more shot at a 20%-40% decline in quality crypto assets this year before the party starts for real next year into 2025. The question is from what prices will that decline begin…
Fed’s gonna push it til something breaks…”
According to Burniske, the catalyst for a crypto market decline is the continuation of hawkish monetary policy from the Federal Reserve. Fed Reserve chair Jerome Powell says more interest rate hikes are likely this year to keep bringing down inflation. Interest rate hikes have historically caused risk-on assets like cryptocurrencies to perform poorly.
Burniske is also predicting that crypto markets will go on a bull run only after the Nasdaq 100 index (NDX) takes a breather.
The investor cites data from Glassnode founders Jan Happel and Yann Allemann who said that since 2019, Bitcoin (BTC) has gone on big rallies multiple times after the NDX cooled.
Says Burniske,
“An interesting observation that crypto often runs after NDX stalls – rotation into higher risk.”
Bitcoin is trading for $30,528 at time of writing, up 0.6% in the last 24 hours.
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