Bitcoin testing $20k range wouldn’t ‘surprise,’ analyst says
Chris Burniske, a partner at Placeholder, a venture capital firm specializing in crypto, recently provided perspectives on the present condition and future path of the cryptocurrency market.
If the price of BTC falls to “the mid-to-high 20s,” or within the $20,000 range, Burniske says he wouldn’t be surprised.
Cautious optimism
On the social media platform X, Burniske shared a comprehensive analysis of the market’s direction, highlighting key points as Bitcoin hovered around the $40,000 level.
Burniske foresees consolidation and decline driven by complex factors such as crypto-specific elements, macroeconomic conditions, adoption rates, and new product development.
Observing a sense of denial in the market, Burniske likens it to partiers yet to sober up, emphasizing an impending period of reckoning.
Predicting Bitcoin to drop to at least $30,000 before potentially testing mid-to-high $20K levels, he warns of a volatile recovery path with possible market fake outs over several months.
Despite short-term bearishness, Burniske remains optimistic about the long-term market trend, focusing on local rather than cycle-wide tops and bottoms.
Acknowledging upcoming new product innovations, Burniske believes they are not fully realized, and the market still feels insular.
However, Burniske further clarified that he is not majorly de-risking his investments but adopting a cautious and strategic approach.
In April 2023, Burniske showed great optimism for the future of Ethereum (ETH). He believed that the Shanghai and Capella updates, commonly known as SHAPELLA, would have a significant impact on Ethereum’s growth.
The Shapella update which would allow stakers to make withdrawals via staking contracts, gave them control over their investments.
Chris Burniske further contends that the ability of Ethereum stakers to exert control over their assets is a positive development for the entire ecosystem and boosts investor confidence.
Presently, Bitcoin (BTC) is trading at around $41,766, up 1.4% in the past 24 hours, while Ethereum (ETH) is exchanging hands for $2,270.
Schiff and Cramer weigh in on Bitcoin’s decline
The recent bearish sentiment surrounding Bitcoin (BTC) has fueled gloomy posts from prominent naysayers, including Euro Pacific Capital CEO Peter Schiff and “Mad Money” host Jim Cramer.
Schiff and Jim Cramer expressed concerns about the decline in Bitcoin’s value, particularly about the launch of new Bitcoin exchange-traded funds (ETFs).
Schiff noted that all spot Bitcoin ETFs are now in bear markets, defined as a drop of 20% or more from the peak, while Cramer warned of a potential Bitcoin selloff and emphasized the rapid surge in its value and the tepid response to the anticipated launch of ETFs.
However, both parties have raised cautionary notes about the trajectory of Bitcoin amid market volatility, with Cramer hinting at the possibility of Bitcoin “topping out” and expressing worries about potential further outflows from ETFs, which could exert additional downward pressure on Bitcoin prices.
The concerns raised by Schiff and Cramer reflect the apprehension surrounding Bitcoin’s recent performance, particularly in the context of the introduction of new ETFs.
Last September, Schiff also warned that the recent legal success of Grayscale in transitioning its GBTC to a spot Bitcoin ETF may have a bearish impact on the cryptocurrency.
