After former US President Trump, who supported cryptocurrencies, won the presidential election in December last year, Bitcoin has been fluctuating between $90,000 and $100,000 for more than two months, and some community members are concerned that the market may have reached its peak, especially during the recent period of sharp declines in a large number of Altcoins.
However, Chris Burniske, a partner at blockchain venture capital firm Placeholder, remains optimistic. He believes that the current cryptocurrency market has not yet reached the cycle peak, and is in a stage of periodic correction similar to April to June 2021. In a response on the community platform X on Saturday, he wrote:
"I don't think this is a sign of a cycle peak, but a mid-bull market correction that makes everyone question their existence. To me, it feels more like April, May, and June 2021, when major coins fell 50% to 80% (like BTC in the chart), many thought it was all over, and the doomsayers gloated, but we ultimately saw a rebound in the second half of 2021."
Burniske added that although this round of the market is indeed different from the past (but still similar in some ways), the decline in BTC is not large, but it may still further decline, and many Altcoins are in pain, with prices falling back to bear market lows. However, "pain will raise questions, and profound questions often bring good answers... and change".
Burniske used Altcoins as an example to explain how the field may improve to get out of the predicament:
"I expect many Altcoins with 'protocol profitability' to start pursuing token buyback programs, or otherwise return those earnings to holders, to address and differentiate themselves from Memecoins."
