Venture capitalist and crypto investor Chris Burniske says that downward chop is the most likely scenario for digital assets in the next market phase.
Burniske says on the social media platform X that after a relatively long uptrend, crypto markets are probably due for a correction.
“Been a solid run of many months for crypto, which leads CT (crypto Twitter) to expect more of the same – misplaced my crystal ball, please DM if you find it, but down to consolidation still looks like the most likely path to me, scream as we may against that reality.”
Burniske also says that the macro situation is in a precarious spot. According to the crypto investor, positive economic data may encourage the Fed to keep interest rates “higher for longer,” while weak data may stir up talks of recession.
The investor, formerly the crypto lead at ARK Invest, says risk assets like crypto need a “Goldilocks” economy, or one with moderate economic growth and relatively low inflation, to flourish.
“Risk assets want a Goldilocks economy, not too strong, not too weak. If numbers come in too strong, the Fed will have little reason to cut, especially if strong numbers mean inflation fears return (in my opinion, they’d prefer to remain restrictive for too long, than let inflation raise its head again).
Too weak and we’ll return to recession talk, then cuts not strictly bullish for risk. Given the recent parabolic run in tech and crypto, while bonds experience heightened volatility, the rest of 1H is gonna get interesting.”
Last month, Burniske said that Bitcoin (BTC) could easily test prices below the $30,000 level.
“Wouldn’t be surprised if we test the mid-to-high $20,000 before all is said and done, and we can make an actual move towards previous all-time highs. The path to get there will be volatile – expect fake outs, and will take months to play out.
As always, patience is your friend. If I’m right, for the most part, other names will drop more in percentage terms than BTC.”
At time of writing, BTC is trading for $42,852.
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Source: https://dailyhodl.com/2024/02/04/investor-chris-burniske-says-crypto-correction-most-likely-scenario-moving-forward-heres-why/