Famous investor Chris Burniske, whose comments on the cryptocurrency market have been closely watched since his prediction of a bottom in 2022, has stated that he expects another crash in the crypto market before the start of a sustained bull cycle.
Warning of a 40% Crash for Bitcoin and Altcoins
Chris Burniske, a partner at venture capital firm Placeholder, expects a sustained bull run to begin in 2024, but warns that there could be a 40% drop in Bitcoin (BTC) and altcoins before the start of this bull run, stating:
The bears may have another chance this year to see a 20% or even a 40% drop in quality cryptocurrencies before a real party starts that will last until 2025. The main question is at what prices this drop will occur. The main drop factor here is the fact that the Fed will keep pushing until something breaks.
Burniske believes that the catalyst for the crypto market crash will be the Fed’s continued tight monetary policy. Indeed, Fed Chairman Jerome Powell’s announcement that they plan to make at least two interest rate hikes this year to curb inflation supports the famous investor’s expectation. Interest rate hikes have always led to poor performance for risky assets like cryptocurrencies.
Investor Expects Bitcoin to Rise After Nasdaq 100 Index
Burniske also expects the crypto market to enter a bull run only after the Nasdaq 100 Index (NDX) takes a breather. Referring to the statements of Jan Happel and Yann Allemann, founders of crypto data company Glassnode, that Bitcoin has experienced major rallies several times after NDX took a breather since 2019, the famous investor said:
There is an interesting observation that the crypto market often rises after NDX stops and takes a breather. This is a result of investors turning to riskier assets.
