Crypto researcher Chirs Burniske predicts $20,000 Bitcoin (BTC) and $1,500 Ethereum (ETH) as maximum bear price scenarios
Worst case scenario for Bitcoin and ETH: $20,000 and $1,500
Despite the ongoing concerns about the high correlation of the crypto market with stocks, which we mentioned in the cryptokoin.com news, analysts still trust crypto. According to market analyst and Placeholder VC partner Chris Burniske, Bitcoin and Ethereum have dominated the stock market and will continue to dominate.
Chirs Burniske says in a tweet that the crypto market is ‘standing pretty well’ against high-growth stocks. Leading crypto Bitcoin (BTC) and leading altcoin Ethereum (ETH) fell nearly 40% from their all-time highs, while many high-growth stocks tumbled between 60% and 80%.
Former ARK Invest head of crypto arm explains three possible reasons for this trend. One of these reasons could be that the relative strength of crypto is temporary and the market has more bearish to catch up with stocks. In the scenario, he predicts that the prices of the two market leaders will drop to $20,000 and $1,500 for BTC and ETH, respectively. Chirs Burniske says:
The relative strength of cryptos has been temporary and we have more room to fall. The maximum bear scenario I would envision would be $20,000 BTC and $1,500 ETH, which is “only” ~70% discounted from the highs.
Two other reasons: Increased adoption and capital inflows
Two other reasons Chirs Burniske suggests are increased adoption and capital inflows. According to the crypto expert, the fact that Bitcoin and Ethereum outperform stocks may be due to Bitcoin’s growing acceptance as an inflation hedge and ETH’s “soon to be considered a quality-returning asset”.
Chirs Burniske explains his thoughts on the impact of adoption as “The market may also recognize the inclusive innovation of crypto.” Similarly, he notes that crypto power over equities may be due to the support of the massive amount of capital that has entered the market in the last 18 months.
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