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Chris Burniske’s Perspective on the Current Crypto Market
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Chris Burniske, co-founder of Placeholder and former crypto lead at Ark Invest, has expressed growing concerns about the recent downturn in the cryptocurrency market. He believes that the significant sell-off last Friday could cause prolonged challenges, making it difficult for the market to establish a lasting upward trend. Burniske stated he might only consider re-entering the market if Bitcoin drops to $75,000 or lower.
Is a New Bitcoin Bear Market Emerging?
In a recent post on the social platform X, dated October 17, Burniske shared his views on the current market cycle, describing it as “disappointing for most” and cautioning investors against being paralyzed by the hope for better days or past all-time highs. He advised focusing on broader monthly trends instead of getting lost in detailed charts.
He further commented, “MSTR is showing weakness, gold is signaling caution, as are credit markets, and the stock market will be slow to react… I am curious to see Bitcoin’s response to $100K but will likely become interested again if it falls to $75K or below.” At the time of the post, his remarks had been viewed 50.2K times.
Market Reactions and Future Outlook
Burniske’s comments came after the October 10 sell-off, which saw Bitcoin drop to the mid-$100K range during intraday trading. This event triggered an unprecedented reset of leverage across the crypto market. As of Friday morning in Europe, Bitcoin was trading below $106,000, marking a decline of approximately 15% from its peak earlier in the month and reducing the total cryptocurrency market capitalization to under $3.6 trillion.
The spot-ETF market, which is crucial to this cycle’s demand, mirrored the shift to risk aversion. Following the liquidation shock, US spot Bitcoin and Ether ETFs recorded net outflows from Monday to Thursday. Bitcoin ETFs saw a decrease of $858.7 million, with losses in three out of four sessions, while Ether ETFs experienced a net outflow of $79.5 million, balanced between inflows and outflows.
Community Insights on the Market Shift
The discussion around Burniske’s post on X highlighted differing opinions regarding whether the October 10 event signaled a cyclical shift or simply a dramatic but potentially positive reset. Shanaka Anslem Perera, a trader specializing in quantitative and derivatives strategies, labeled it a “VaR shock, not a cycle top,” emphasizing the need for new spot demand as leverage resets. Burniske acknowledged Perera’s analysis as insightful.
Another user, Magumsy, argued against the notion of the event “breaking crypto,” citing ongoing on-chain flows and institutional liquidity as stabilizing factors. Burniske clarified that his comment referred to the diminished enthusiasm for bidding among investors and institutions.
Implications for Altcoins and Market Strategy
When questioned about the potential impact on altcoins if a bear market ensues, Burniske candidly stated, “It depends on the altcoin, some have vast potential, while others might not recover. It’s time to focus on your strongest convictions and perhaps consolidate into USD, which is what I’ve done.”
The critical question now is whether Bitcoin needs to revisit the mid-$70K range to attract sidelined capital. Burniske’s approach—monitor market behavior at $100K and consider re-entering at $75K or lower—suggests a reevaluation of risk following a unique cycle, with the next bear phase likely to be distinct as well.
As of the latest update, Bitcoin was trading at $104,809.
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