Venture Capitalists Call Current Crypto Dip a Typical Mid-Bull Market Correction

Venture capitalist Chris Burniske suggests that the current downturn in the digital asset market is a typical part of the cycle that occurs during bull runs.

Burniske, a former head of crypto at ARK Invest and now a partner at Placeholder, shared his thoughts on X, referencing similar pullbacks that happened during the 2021 bull market, which were eventually followed by new all-time highs.

He highlighted that Bitcoin (BTC) fell 56%, Ethereum (ETH) 61%, and Solana (SOL) saw a 67% dip at the time, while other assets experienced declines of 70-80% or more. Burniske argues that despite the reasons people give for why this cycle may be different, such mid-bull corrections are common and not a sign of a full-blown bear market.

Currently, Bitcoin has dropped 20% from its peak, Ethereum is down 50%, and Solana has fallen 51%. Burniske previously pointed out that Bitcoin’s underwhelming performance is reminiscent of the “mid-cycle top” seen in 2021, noting how many believed the market was done before it surged in the second half of that year.

Raoul Pal, former Goldman Sachs executive and CEO of Real Vision, shares a similar view, insisting that the ongoing correction is just a temporary setback on the path to new highs. He compared it to the 2017 market structure, where Bitcoin experienced multiple significant pullbacks, each lasting a couple of months before new records were reached. Pal encouraged investors to stay patient and not be distracted by short-term fluctuations.