• Chris Burniske, a partner at the venture capital firm Placeholder, predicts that crypto markets will experience a 20%-40% decline before entering a bull market in 2024.
• He believes the Federal Reserve’s hawkish monetary policy is the catalyst for this decrease in prices.
• Burniske also states that crypto markets typically rally after Nasdaq 100 (NDX) takes a break.
Investor Predicts Crypto Market Correction
Chris Burniske, a partner at the venture capital firm Placeholder, is predicting that crypto markets will experience one more correction of up to 40%, before entering into an enduring bull market in 2024. Burniske has 262,300 followers on Twitter and was correct in his prediction of the 2022 crypto bottom.
Catalyst for Price Decline
Burniske believes that the main catalyst for this decrease in prices is due to the continuation of hawkish monetary policy from the Federal Reserve. Fed chair Jerome Powell has said interest rate hikes are likely this year to keep bringing down inflation which historically causes risk-on assets like cryptocurrencies to perform poorly.
Crypto Markets Rally After NDX Break
The investor also cites data from Glassnode founders Jan Happel and Yann Allemann who said that since 2019, Bitcoin (BTC) has gone on big rallies multiple times after NDX cooled off. This suggests that there may be some rotation away from NDX into higher risk assets such as cryptocurrencies when it takes a break.
Bitcoin Price Update
At time of writing, Bitcoin is trading for $30,528 which is up 0.6% in last 24 hours.
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