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.

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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.

Alexander Stefanov