Ex-Ark Invest Crypto Lead Says What Will Happen With The Market

Chris Burniske, the former head of crypto at Ark Invest, described his own scenario, after which the cryptocurrency market will finally enter a reversal rally. At the same time, the analyst don’t expect that things go as badly as they did in 2008.

“Another big flush”

In his most recent message, Burniske told his followers that the market needs another big flush that will take all the pessimism from market participants into account. According to various sentiment indicators, most cryptocurrency traders and investors are still in fear despite the relative calm in the market.

Things probably aren’t as bad as the 2008 dooooooooomers say, but we probably need at least one more big flush to gauge any pessimism, hit rock bottom in despair, and have a solid foundation on which to build progressive optimism. (i.e., upside down).

— Chris Burniske (@cburniske) September 6, 2022

With another drop, the cryptocurrency market will most likely reach the long-awaited bottom and enter an extended consolidation. After a cool down, institutional investors may pay more attention to oversold assets, offering more buying power and pushing the market value higher.

According to the institutional entries into the cryptocurrency market we mentioned earlier, most investors avoid investments in digital assets and only place funds in short BTC ETFs and other investment tools.

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What’s going on with the market now?

On September 5, the DXY index which represents the value of the US dollar against the range of foreign currencies hit a 20-year high, which undoubtedly affected the digital asset market.

While the effects of the rising US Dollar may not be as devastating as one might expect, it is a huge risk factor that drives potential investors away from asset-linked cryptocurrencies. high risk.

At press time, Bitcoin is trading at $19,969 and moving within the non-volatile consolidation range formed since August 28.