Venture capitalist Chris Burniske recently shared his insights on the current dip in digital assets, stating that it is typical of any bull market cycle. In a post on the social media platform X, Burniske, who was previously the head of crypto at Cathie Wood’s ARK Invest and is currently a partner at Placeholder, highlighted previous corrections in the 2021 bull market cycle that ultimately led to new highs.
Burniske pointed out that in the middle of 2021, Bitcoin (BTC) experienced a drawdown of 56%, Ethereum (ETH) saw a drawdown of 61%, Solana (SOL) faced a 67% drawdown, and many other digital assets dropped by 70-80% or more. Despite these significant corrections, Burniske emphasized that the current mid-bull reset is not unprecedented and should not be seen as a signal for a full-blown bear market.
As of the time of writing, Bitcoin is down 20% from its all-time high, Ethereum is down 50%, and Solana is down 51%. Burniske previously compared BTC’s lackluster price performance to a “mid-cycle top” similar to what was observed in April, May, and June of 2021, when the market saw a resurgence in the second half of the year.
Former Goldman Sachs executive and Real Vision CEO Raoul Pal shares Burniske’s optimistic outlook, stating that the current correction is just a temporary setback on the path to new highs. Pal drew parallels to the 2017 market cycle, highlighting multiple pullbacks of over 28% in Bitcoin, lasting for 2 to 3 months before reaching new highs. He encouraged investors to remain patient and not get caught up in short-term fluctuations.
In conclusion, both Burniske and Pal believe that the current dip in digital assets is part of a normal market cycle and should not deter investors from staying focused on the long-term potential of cryptocurrencies. By learning from past market cycles and exercising patience, investors can navigate through volatile periods and potentially benefit from future growth opportunities in the crypto space.