Venture capitalist Chris Burniske predicts smoother sailing for cryptocurrencies. He believes a potential second Trump administration, known for its pro-crypto stance, could significantly alter the landscape.
The End of the Four-Year Cycle?
Burniske, known for his large social media following, suggests Bitcoin’s traditional four-year cycle, tied to halving events, might be disrupted. These halvings, which cut Bitcoin miner rewards in half, have historically led to massive price increases. However, Burniske thinks a supportive US government could lead to more stable, sustained growth.
A Goldilocks Scenario for Crypto?
He envisions a “Goldilocks period” – a sustained period of moderate growth, unlike the dramatic boom-and-bust cycles seen previously. This steadier growth would likely mean less frequent and less severe market crashes. He attributes this potential shift to several factors.
ETFs and Reduced Drawdowns
Burniske points to the increasing availability of crypto exchange-traded funds (ETFs) as a key factor. He believes ETFs will provide consistent buying pressure, smoothing out the volatility. While he doesn’t predict the complete elimination of market corrections, he anticipates significantly less extreme drops than in the past.
Looking Ahead
Burniske acknowledges that even with a more stable market, significant drawdowns remain possible, though likely less severe than the 80%+ drops seen before. He uses the 200-week simple moving average (SMA) as a gauge, suggesting a potential 60% drawdown as a worst-case scenario. He remains optimistic, predicting 2025 will be a strong year for crypto investors.
Disclaimer: This information is for general knowledge and does not constitute financial advice. Always conduct thorough research before investing in cryptocurrencies.
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