Venture capitalist Chris Burniske predicts a period of steady growth for the crypto market, potentially fueled by a supportive US administration under President Trump and the buy pressure provided by the Bitcoin and Ethereum ETFs.
Breaking Traditions: He suggests this period could break the traditional four-year cycle observed in Bitcoin’s price history, leading to more consistent buying pressure and less extreme drawdowns.
Burniske — who previously led crypto research for Ark Invest and now serves as a Partner at Placeholder venture capital firm — believes that the crypto market is maturing, transitioning from a speculative phase to a period of wider deployment and adoption.
He draws parallels to Carlota Perez’s technological revolution framework, suggesting that crypto is entering the “Deployment” phase after a turbulent 2022-23.
The venture capitalist emphasizes that this doesn’t preclude future drawdowns, but they may be less severe than the 85-95% drops seen previously, particularly for major cryptocurrencies like Bitcoin and Ethereum.
Burniske attributes this to growing recognition of crypto’s staying power, lessening the “this is dead” sentiment that fueled past crashes.
A key driver of this steadier growth, according to Burniske, could be Solana and other crypto ETFs getting approvals following in the footsteps of Bitcoin and Ethereum ETFs, leading to consistent inflows of capital into the cryptocurrency market.
A Friendly US Administration: Burniske’s optimistic outlook hinges on a supportive US administration under President Trump.
Trump, who is set to swear in on January 20th, is expected to run a crypto-friendly administration, especially as he counted on the community’s support as part of his campaign.
The president has indicated plans to instill a strategic Bitcoin reserve.
Counter-Argument: However, not all analysts share Burniske’s rosy outlook. Ari Paul, another prominent crypto investor, offers a counter-narrative.
Paul likens the current crypto market to the 1999 tech bubble, suggesting that while blockchain technology holds promise, many current protocols and tokens may not survive. He anticipates a potential bubble peak in the next couple of years, followed by a severe crash unlike previous crypto cycles.
The investor believes a “clearing out” is likely, with many projects failing to recover. He argues that current blockchains lack the necessary innovation for sustainable scalability and utility, and that incremental upgrades by existing projects may not be sufficient.
Community Optimism: Burniske’s comments come at a time when there is widespread optimism in the community anyway, not the least because of Trump.
Bitcoin is once again sitting at the verge of hitting $100,000 , trading at $99,270 at the time of writing, recovering from a low of $90,000 seen just three days ago.
The apex cryptocurrency crossed into six digits for the first time ever in December 2024, hitting an all time high of $109,268.45 on Dec. 17.
The cryptocurrency market overall meanwhile hasa hit a market valuation of $3.47 trillion, according to data tracked by CoinMarketCap.
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