Bitcoin Might Drop to Mid-$20K, Predicts Chris Burniske

• Bitcoin's Local Bottom is Yet Unseen
• Investor Patience is Key
• Economic Factors and Crypto Market
• Not De-Risking but Preparing

Bitcoin's Local Bottom is Yet Unseen

Chris Burniske, a partner at venture capital firm Placeholder and former crypto lead at Ark Invest, suggests that the local bottom for Bitcoin$42,260 -0.64% (BTC) may still be to come. His expectations indicate a potential drop to the $30,000-$36,000 range, and he wouldn't rule out the possibility of a test in the mid-high $20,000 area before the digital currency moves towards setting a new record high.

Investor Patience is Key

Burniske points out that patience will be an investor's best ally during this period. The pathway to a new high is likely to be fraught with volatility, including probable fakeouts, and it could be a few months before the scenario plays out. He emphasizes that while the long-term trend for Bitcoin is on solid ground, there have been a few parabolic movements during this cycle that are now breaking.

Economic Factors and Crypto Market

There are also macroeconomic factors that appear precarious at multiple dimensions. Product innovations in the crypto space are on the horizon, but are not quite ready for deployment. Even though the market feels somewhat insulated, Burniske believes it is important to remain vigilant. His observations come after Bitcoin fell almost 20% to slip under $40,000, a major tumble following the Jan. 11 opening for trade of the spot Bitcoin ETFs. Recordings at press time had the digital currency valued at $41,700.

Not De-Risking but Preparing

Contrary to certain speculations, Burniske clarified that he was not advocating for major de-risking. Instead, his approach is more about strategic preparations - counting bullets and sharpening blades, so to speak - to be ready for the uncertain path ahead.

Edited by Jonathan Stoker