A veteran of the crypto space predicts the next bull market for digital assets and predicts that more projects will reach trillions of dollars in value.
In a new interview with Bankless, former ARK Invest CEO and current partner at venture capital firm Placeholder Chris Burniske says he’s keeping an eye on how interest rate changes could potentially affect the timing of the next crypto bull market.
He says there aren’t many reasons he can think of why the next crypto market won’t arrive like it has in years past.
“I would say the biggest reason is number one [is] where are the rates going. If the risk to the previous rate of return is four or five percent over a long period of time, that sucks so much energy out of risky assets like stocks, like cryptocurrency, because suddenly your base rate of return is 5%, so in order to take on more risk than Treasuries, you must be getting 10%, 15%, 20%, 30% or more from something like crypto. And so it just ends up discounting all the risky assets. So I could see the tightening of things.
You have some traditional finance heavyweights, Druckenmiller or Howard Marks of Oaktree [Capital] saying that we have a regime change, this will be a significantly different period in the future…”
However, Burniske says traditional financial players may be too committed to their own ways of thinking and may be missing the details of the fast-paced crypto space.
“When I look – and you’d put me more in the Cathie Wood camp here – I look at the rate of change and the rate of innovation and the huge amount of GDP growth that’s happening within crypto, it’s insane. That’s like a triple digit CAGR (compound annual growth rate) every year.
Those guys, Marks and whoever, don’t pay attention to it. Druckenmiller is bullish on BTC but they’re not like weeds who would say ‘oh my god look how much this is growing’ and if they could believe the economy was growing at a triple digit CAGR they’d say ‘well that could probably be overcome in a tighter monetary environment.’”
The venture capital investor says that while he is not sure of the time frames, the general scenario of the crypto market is probably already inevitable. He says he already has price targets set and expects multiple crypto assets to reach trillions of dollars in value.
“I have a plan. I have target prices that are meaningful to me and Placeholder. If we hit those target prices in 2025, I’ll take action. If we hit them in 2027 because things are delayed more, then I’ll just take more time, I’m not in a rush. I believe that we will have multiple crypto networks in the range of a trillion and more.And so, there’s my head.
No one can say exactly how long it will last, the initial case would be fine, if we just repeat the past cycles, 2024 is a big year, next year is like a growing expansion. 2025 is a crazy year. If we’re starting to see patterns, then that’s fine, folks, pay attention…”
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Featured Image: Shutterstock/Wuttikai Pimpakhun