Bitcoin’s 4-year cycle is breaking and that’s a good thing, industry expert says
Bitcoin Bitcoin/US Dollar It seems to be getting out of place The traditional price cycle is four yearsaccording to an industry expert Chris Burniskewhich indicates that the flagship cryptocurrency will see more moderate withdrawals in the future.
What happened: Burniske on Wednesday X anticipation Under a supportive US administration, cryptocurrencies could enter a “goldilocks period,” characterized by more stable growth and less extreme drawdowns.
For major assets such as Bitcoin and… Ethereum ETH/USDCorrections of 85% to 95% may become a thing of the past. Alternatively, drawdown rates may decline to around 60%, especially with the 200-week Simple Moving Average (SMA), currently near $40,000, providing reliable support.
While drawdowns will continue, they will likely be less severe as the market matures and the permanence of major crypto assets is realized, reducing the “this is dead” sentiment.
However, this stability may not apply to meme currencies.
Burniske stressed that blockchain should be viewed as fundamental to the digital future, rather than a speculative “get-rich-quick” scheme.
Those who treat cryptocurrencies like lottery tickets are unlikely to succeed.
Read also: BlackRock says Bitcoin adoption is still early
Why it matters: Ari PaulThe founder of BlockTower Capital disputed this positive notion, comparing the current blockchain landscape to the 1999 tech bubble.
While blockchain technology has the potential to shape the future, Paul Argue Most existing protocols and codes lack the radical innovation required for widespread adoption and scalability.
Incremental upgrades alone may not be enough to bridge the gap between niche and mainstream usability.
Paul too He grew up Concerns about what could drive the next major growth phase for cryptocurrencies.
Despite milestones like BlackRock’s Bitcoin ETF push and President-elect Trump’s endorsement of Bitcoin at conferences, fundamental issues remain.
Ease of use remains a major barrier, as decentralized finance platforms are still unable to be easy to use or strongly decentralized.
What’s next: Burniske predicts a volatile but ultimately positive year for cryptocurrencies in 2025, stressing the need to combat short-termism and pessimism in the market.
Approval of Bitcoin, Ethereum and Solana Sol/US Dollar ETFs can increase market stability by introducing consistent buying pressure, reducing the extreme volatility that has historically characterized cryptocurrency markets.
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