Cryptocurrency investment firm Placeholder’s partner, Chris Burniske, wrote an article on X platform today (8th) analyzing that he believes this week’s crash is not a sign of the cycle top, but rather a mid-bull market pullback similar to the one in April to June 2021. He still remains confident in the future market.
After experiencing a major crash on Monday, with Bitcoin dropping below $92,000, Bitcoin briefly surged to $100,000 late Friday night after the release of mixed US non-farm payroll data. However, it plummeted again by 4.5% to a low of $95,601 as President Trump announced his plans to impose tariffs on more countries. As of the time of writing, it is reported at $96,213, with a 24-hour drop of approximately 0.6%.
Ethereum (ETH) also experienced a similar rise and fall, surging above $2,797 and then dropping by 8.4% to $2,562. At the time of writing, it is at $2,629 with a 24-hour drop of over 3%.
Chris Burniske, partner at Placeholder: The current cycle is still in the early stages of a bull market pullback
Many community investors believe that the bull market may have reached its peak due to the major crash in the cryptocurrency market this week. However, Chris Burniske, partner at Placeholder, wrote an article on X platform today (8th) analyzing that “this is not a sign of the cycle top, but rather a mid-bull market pullback.” He still remains confident in the future market.
To me, it feels a lot more like the pullback in April, May, and June of 2021 when various tokens fell by 50-80%. Many people said it was over, and those who called the top gloated, but the market experienced a surge in the second half of 2021.
Analyst: The current cycle is still in the early stages of a bull market, and venture capital funds have not yet entered in large numbers
According to Blockworks, analyst Jason Yanowitz from Empire also stated that if we don’t consider Strategy’s (formerly MicroStrategy) Bitcoin holdings, the current cycle “may still be in the early stages.” Yanowitz believes that Strategy has supported Bitcoin’s current price, and if Michael Saylor’s company hadn’t spent over $20 billion buying Bitcoin from the end of last year to now, the price of BTC would be much lower. However, he pointed out that there hasn’t been enough venture capital entering the market on a large scale yet, and it still presents a “very PvP (player versus player)” scenario. Venture capital will be a key measure for the arrival of the altcoin season.
Multiple bullish signals for ETH?
On the other hand, Ethereum, which is seen as the touchstone for altcoins, has yet to break through the previous bull market’s all-time high of $4,878. Instead, it is currently hovering below $2,700 due to a series of controversies. It has not been able to lead the altcoin season to a full-scale explosion in this cycle.
However, an article from Coindesk pointed out that ETH’s price movement is similar to when it bottomed out in August last year, suggesting that a new round of price increase may be imminent.
After dropping to nearly $2,000 on Monday, ETH rebounded to $2,700 on the same day, marking the largest single-day volatility since September 2021. The intense two-way fluctuations have led to a surge in ETH trading volume on exchanges, reaching the highest level since August.
The increase in trading volume indicates that selling pressure may have peaked early this week, resulting in a decrease in potential sellers in the market. This may help stabilize prices and lay the foundation for a rebound.
In August last year, ETH experienced two-way fluctuations driven by high trading volume, dropping to around $2,100, but stabilizing in the range of $2,200 to $2,800 within a few weeks. It then gained new upward momentum and skyrocketed to $4,100 at the end of last year.
Jake Ostrovskis, an OTC trader at Wintermute, also noted the strong demand for ETH in the OTC market, which is especially noteworthy amid discussions about a fund liquidating due to weekend volatility.
Other bullish signals include the net inflow of $420 million into the US Ethereum spot ETF just this week, which accounts for 13% of the total inflow of $3.18 billion since its launch.
In the options market, Deribit exchange has seen large bullish call spreads, including buying call options with a strike price of $3,500 and selling call options with a strike price of $5,000, both expiring on December 26, 2025.