Venture capitalist Chris Burniske believes cryptocurrencies will soon enter uncharted territory as the United States welcomes Donald Trump’s election as president for a second time.
Burniske told his 317,600 followers on social media platform
BTC’s four-year cycle is based on a halving event, where Bitcoin miners’ rewards are halved every four years. In the past, halvings have been correlated with parabolic rallies in Bitcoin, as a drop in new BTC emissions creates an imbalance between supply and demand.
Bernisk says:
“Continue to believe that BTC is likely to break the simple four-year cycle it has followed for the past 12 years…
“If we support the U.S. government, cryptocurrencies could enter a Goldilocks period over the next few years with non-parabolic returns, but instead see steady growth as well as stopping the majors from suffering 85-95% declines.”
In investing, a Goldilocks scenario is when an asset class shows moderate, sustainable growth over a long period of time.
Burniske also predicts that once digital assets enter Goldilocks territory, the market crashes that cryptocurrency investors have become accustomed to will be in the rearview mirror. He believes that exchange-traded funds (ETFs) will support the steady rise of cryptocurrency assets while minimizing market declines.
“On drawdowns: I’m not saying they’ll stop, I’m saying they’re likely to become less extreme for the majors. This can whip up those who overtrade too aggressively…
We also have ETFs for both BTC and ETH, and we think SOL+ will probably provide more consistent buying pressure on these assets soon.”
While investors are counting on steady growth for large-cap coins, they note that digital assets could still witness massive corrections, but they won’t be as severe as those seen in the past.
“If you want to see how much downside BTC may be exposed to, look at the 200-week Simple Moving Average (SMA), which has been the most reliable technical support during each bearish period. Currently at ~$40,000, that means a 60% decline is possible, which is far from 80%+ (a 60% decline would require another 50% decline to achieve an 80% decline). If BTC rises, the 200-share SMA will rise as well.”
Burniske concluded by saying that 2025 will be a “good year” for cryptocurrency investors.
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