PakGazette – (BTC) has fallen to its lowest levels for December, falling below $92,000, and many cryptocurrency enthusiasts are trying to figure out why. Chris Burniske, former crypto leader at ARK Invest and current partner at Placeholder VC, has shared his thoughts as he looks at the bigger picture, not just the world of cryptocurrencies.
In Inn Burniske’s view, the year-end decline in Bitcoin is less about investors losing interest and more about seasonal financial patterns now influencing the cryptocurrency market. With the long-awaited launch of multiple Bitcoin and ETFs in 2024, cryptocurrencies have become more closely linked to traditional finance.
This connection amplifies the effects of year-end activities such as portfolio rebalancing and account reconciliation.
It’s interesting to see that while BTC is struggling, other cryptoassets like ETH and SOL are holding firm or even gaining strength, Burniske notes. This goes against the idea that the market is completely avoiding risk and suggests that this is more of the usual end-of-year financial management.
It appears that trading strategies and algorithms, which are often influenced by institutions, have changed to adapt to these seasonal trends.
The holiday season is typically a slow time for trading, so it is interesting to see how it is affecting cryptocurrencies. It’s been a big year for the digital asset market, with new ETFs launching and more people getting involved.
That being said, cryptocurrencies are now officially part of the stock market, whether we like it or not. This means that the correlation with the main assets, or at least with their main behavioral patterns, is here to stay, which cannot be avoided.
