According to a respected investor, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have reached their lowest point in the current crypto market. Chris Burniske, a former executive at ARK Invest, predicts that these three cryptocurrencies are unlikely to drop further this year.
Warning about bottom vultures
He cautions against “bottom vultures,” individuals who may claim that prices will fall even lower, but have no intention of investing long-term.
Burniske believes that while 2019 may provide helpful context, BTC, ETH, and SOL will not hit new lows in 2023.
Although there may be some setbacks, he anticipates a continued upward trend in the long term, cautioning investors to be wary of those who will never buy.
The cryptocurrency markets, including BTC, ETH, and SOL, have experienced a decline over the past seven days. At the time of writing, BTC has dropped by 12%, ETH by 10.4%, and SOL by 15.7%.
According to Burniske, a partner at venture capital firm Placeholder, decentralized finance (DeFi) played a key role in reviving the crypto market after the last bear market.
He believes that a similar catalyst will be necessary to uplift the current bear cycle.
Burniske cites Friend.Tech (FT), a new social application built on the Coinbase-backed Ethereum layer-2 chain Base, as an example of what could kickstart the next bull cycle.
To revive the market after the last bear, DeFi games were developed to attract users. Therefore, social games like FT could be the catalyst for users in this cycle. Typically, users are the first to engage, followed by the rest of society as follower apps improve the user experience.
New BTC prediction
A well-known analyst, going by the name TechDev, has put forward the idea that the recent dip in Bitcoin’s value may just be a temporary setback before witnessing another upward surge of the cryptocurrency.
With a considerable following of 417,000 people, TechDev has studied the patterns of previous cycles, and believes that this drop to $25,000 could actually act as a catalyst for a new round of expansion.
By keeping a close watch on global liquidity cycles, the analyst makes use of the Chinese 10-year bonds (CN10Y) and compares them to the US dollar index (DXY) to predict market trends.
TechDev’s chart displays the true strength indicator (TSI) which is used to determine the momentum of CN10Y against DXY. It remains to be seen if the market will experience another surprise in the coming months or if this time will be different.
