Venture capitalist Chris Burniske argues that the current downturn in digital assets is a normal part of any bull market cycle. His insights highlight why calls for a prolonged bear market are premature.
Mid-Bull Market Corrections: A Historical Perspective
Burniske, former head of crypto at ARK Invest and current partner at Placeholder, compares the current pullback to mid-cycle corrections in 2021. In a detailed post on X, he notes:
*“In the middle of 2021:
BTC drew down 56%
ETH drew down 61%
SOL drew down 67%
Many others 70-80%+
You can come up with all the reasons for why this cycle is different, but the mid-bull reset we’re going through isn’t unprecedented. Those calling for a full-blown bear are misguided.”*
At the time of writing:
- Bitcoin (BTC) is down 20% from its all-time high.
- Ethereum (ETH) is down 50% from its peak.
- Solana (SOL) has declined 51% since its high.
👉 Why seasoned investors remain bullish on crypto
Why This Cycle Mirrors 2021
Burniske previously described BTC’s stagnation as a “mid-cycle top”, similar to the April–June 2021 period when skeptics prematurely declared the bull run over. Instead, the market rebounded strongly in the second half of 2021.
Key Takeaways:
- Bull markets include deep corrections: Temporary pullbacks are typical.
- Patience pays off: Historically, assets recover and reach new highs.
- Alts face sharper drops: Altcoins often correct more severely than Bitcoin.
Raoul Pal Reinforces the Optimism
Real Vision CEO Raoul Pal agrees, comparing the current phase to 2017’s cyclical pullbacks:
*“You guys all need to learn patience…
This was 2017. Very similar macro structure:
5 x 28%+ pullbacks in BTC
Most lasted 2 to 3 months before a new high
Alts saw 65% corrections.
All were noise.
Go do something else more constructive than stare at the screen.”*
FAQs
1. Is this a crypto bear market?
No. Leading investors view this as a mid-bull correction, akin to 2021’s 50–60% dips before new highs.
2. How long might the downturn last?
Historically, 2–3 months, though altcoins may take longer to recover.
3. Should I sell my crypto holdings?
Panic-selling during corrections often leads to missed gains. Focus on long-term trends.
👉 How to navigate crypto market volatility
Core Keywords:
- Crypto bull market
- Bitcoin correction
- Ethereum pullback
- Solana downturn
- Mid-cycle reset
- Raoul Pal crypto
- Chris Burniske analysis
Conclusion
Market veterans like Burniske and Pal emphasize patience and historical context. While short-term volatility is unsettling, the data suggests this is a healthy reset, not a bear market. Stay informed, avoid emotional decisions, and keep an eye on long-term growth.
For strategic crypto insights, explore trusted resources and diversify wisely.