According to Chris Burniske, Bitcoin’s decline below $92,000 is not due to investor apathy, but rather the crypto’s increasing correlation with traditional financial trends.
Bitcoin (BTC) has fallen to December lows below $92,000, and the crypto community is starting to question the reasons for this decline.
Placeholder VC partner and former ARK Invest crypto leader Chris Burniske assessed the situation from a broader perspective, making a statement that is not limited to the crypto world alone.
According to Burniske, this year-end decline is not due to investors losing interest, but rather due to seasonal financial trends that are now affecting crypto markets.
With the launch of multiple Bitcoin and Ethereum ETFs in 2024, crypto has forged a tighter connection with the traditional financial world.
Burniske noted that this link increases the impact of financial transactions such as year-end portfolio balancing and account reconciliation on crypto markets.
Ethereum and Solana stand out
Burniske also noted that while Bitcoin is struggling, other cryptocurrencies like Ethereum (ETH) and Solana (SOL) are showing resilience or gaining momentum.
This runs counter to the idea that the market is completely risk-averse and appears to be more of a result of year-end financial adjustments. He said institutional investors’ strategies and algorithms are changing to adapt to these seasonal trends.
Stating that periods such as the Christmas holiday are generally times when trading volume is low, Burniske emphasized that it is interesting to observe how this situation affects the crypto market.
According to Burniske, 2024 is set to be a big year for digital assets, with new ETFs launching and more people getting involved in crypto.
However, with these developments, crypto has now become a part of the stock market. This shows that the correlation of crypto markets with traditional assets is permanent and this interaction cannot be avoided.
Stay tuned