Crypto Cofounder: Bitcoin ‘Broken,’ Could Plunge to $75K
Chris Burniske, cofounder of Placeholder and former Ark Invest crypto lead, contends that the October 10 selloff “broke crypto for a while,” signaling a potential prolonged bear market. He believes the market will struggle to develop a sustained bid and anticipates renewed interest when Bitcoin reaches $75,000 or lower. Burniske describes the current cycle as “disappointing for most,” urging investors to focus on linear monthly trends rather than short-term fluctuations. He highlights broader economic concerns, including MSTR slipping, gold sending warnings, and issues in credit markets, suggesting stocks will eventually follow.
The October 10 event saw Bitcoin drop to the mid-$100,000s, triggering the crypto market’s sharpest-ever leverage reset. This led to Bitcoin trading below $106,000, a 15% decline from its monthly peak, and dragged the total crypto market capitalization under $3.6 trillion. The spot-ETF complex mirrored this risk-off sentiment, with US spot Bitcoin and Ether ETFs experiencing significant net outflows for the week; Bitcoin ETFs alone saw -$858.7 million.
While Burniske frames this as a fundamental break, others debate whether it’s a cyclical downturn or a constructive reset. Quant trader Shanaka Anslem Perera views it as a “VaR shock, not a cycle top,” arguing that leverage has been washed out, and future upside will rely on spot demand rather than perpetuals. He notes that the marginal bid has shifted to US spot ETFs and corporate/sovereign treasuries. Another commenter, Magumsy, felt “breaking crypto” was “overblown,” citing on-chain flows and institutional liquidity as buffers. Burniske clarified he meant it “broke a lot of peoples’, or institutions’, appetites to bid.” For altcoins, he advises consolidating into high-conviction names or USD, noting some altcoins could be “bottomless.” The crucial question remains whether Bitcoin needs to revisit the mid-$70,000s to attract sidelined capital, implying a broad re-rating of risk after a unique cycle.
(Source: https://bitcoinist.com/bitcoin-broken-bears-75000-placeholder-cofounder/)
