Venture capitalist Chris Burniske explains that the current decline in digital assets is a common occurrence within any bull market cycle. In a recent post on the social media platform X, Burniske, the former head of crypto at Cathie Wood’s ARK Invest and current partner at Placeholder, highlights previous corrections in the 2021 bull market cycle that foreshadowed new highs.
Burniske points out that during the middle of 2021:
– BTC experienced a 56% drawdown
– ETH saw a 61% drawdown
– SOL underwent a 67% drawdown
– Many other assets faced corrections of 70-80% or more
Despite claims that this cycle is unique, Burniske argues that the ongoing mid-bull reset is not unprecedented and those predicting a full bear market are mistaken. Currently, Bitcoin (BTC) is down 20% from its peak, Ethereum (ETH) is down 50%, and Solana (SOL) is down 51%.
Earlier this month, Burniske compared BTC’s lackluster performance to a “mid-cycle top” similar to the pullback in April, May, and June of 2021, which was followed by a strong rally in the second half of the year.
Former Goldman Sachs executive and Real Vision CEO Raoul Pal shares Burniske’s view, believing that the current correction is just a temporary obstacle on the path to new highs. Pal emphasizes the importance of patience and draws parallels to the market conditions of 2017, where multiple pullbacks were followed by new highs after a few months.
In conclusion, Burniske and Pal suggest that investors remain patient and avoid overreacting to the current market fluctuations.
