Investor Chris Burniske Sees Crypto Entering ‘Goldilocks Period’ Amid Support From Incoming US Administration

Investor Chris Burniske Sees Crypto Entering ‘Goldilocks Period’ Amid Support From Incoming US Administration

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Venture capitalist Chris Burniske believes that cryptocurrencies are about to enter uncharted territory as the United States welcomes Donald Trump’s second presidency.

Burnicki tells his 317,600 followers on social media platformBitcoin) The four-year cycle may see an abrupt end with the formation of a pro-crypto US government.

BTC’s four-year cycle is based on halving events when Bitcoin miners’ rewards are halved every four years. In the past, halvings have been associated with Bitcoin parabolic rallies, as fewer new Bitcoin emissions created an imbalance between supply and demand.

He says polishing,

“We still believe there is great potential to break the simplistic four-year cycle that BTC has respected for the past 12 years…

With a supportive US administration, cryptocurrencies could enter a Goldilocks period over the next several years, where returns are no longer equivalent, but instead see steadier growth, not to mention major currencies stop suffering 85-95% drawdowns.

In investing, a Goldilocks scenario is when an asset class experiences moderate, sustainable growth over a long period of time.

Burniske also predicts that the market crashes that crypto investors are accustomed to will be in the rearview mirror once digital assets enter the Goldilocks zone. He believes exchange-traded funds (ETFs) will support the steady rise of crypto assets while minimizing market drawdowns.

“Regarding drawdowns: I’m not saying they’ll stop, I’m saying they could become less extreme relative to the major currencies, which could make people who over-trade too aggressive…

I also believe that both BTC and ETH have ETFs, and perhaps SOL+ soon, that will provide more consistent buying pressure for these assets.

While the investor believes in the steady growth of large-cap coins, he points out that digital assets could still see painful corrections, but they most likely will not be as severe as those seen in the past.

“If you want to see what percentage drawdown Bitcoin can experience, look at the 200-week SMA (Simple Moving Average), which has been our most reliable technical support in every down period. For now At ~$40,000, this suggests a drawdown potential of 60%, which is a far cry from 80%+ (it would have to drop another 50% from 60% down, getting to 80% Down).And as BTC rises, the 200-week SMA also rises.”

Burniske concludes by saying that 2025 will likely be a “great year” for cryptocurrency investors.

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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