Venture Capitalist Chris Burniske warns that the massive crypto collapse on October 10th has destroyed risk-taking appetite in digital assets.
In a thread on X, the partner at VC firm Placeholder says the violent downturn over a week ago, which wiped roughly $19 billion in market capitalization, has fractured sentiment in crypto and will take time to repair.
He says the event is a structural break in confidence rather than a routine correction, citing the difficulty of reestablishing buying momentum after such an abrupt collapse.
“Increasingly convinced last Friday’s massacre broke crypto for a while – hard to quickly develop a sustained bid, after such a meltdown. This cycle has been disappointing for most, which can paralyze action as people hope for bluer skies or former all-time highs.”
He says while the charts for Bitcoin (BTC) and Ethereum (ETH) are on the up and up, he notes that the top two largest crypto assets are flashing signs of weakness. Burniske also warns traders not to mistake short-term bounces for a sustained recovery.
“It’s easy to get caught up in chart minutiae, but when looking at BTC and ETH in linear monthly, it reveals *we’re still in the elevated range* (although showing cracks), if you’re thinking of taking profits.”
The venture capitalist adds that movements in other asset classes suggest that lower prices are on the horizon.
“MSTR (Strategy) is slipping, gold is sending a warning, as are credit markets, and stocks will be the last to get the message. We can always get another weak bounce, but I’ve taken action accordingly (remember, it’s never all or nothing when raising cash).”
Looking closer at Bitcoin, the investor says he’s keeping a close eye on how Bitcoin reacts when it hits a key psychological price level.
“I want to see how BTC responds to $100,000, but will likely get interested in the market again when I see BTC $75,000 or lower. This bull was different, and the next bear will be different too.”
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