Chris Burniske, who correctly predicted the crypto bottom in 2022, talked about the pressure of the US government on the cryptocurrency market in his latest interview. Recently, the Coinbase exchange received a Wells notice from the SEC, which could be a harbinger of the upcoming lawsuit. Coinbase, which is traded on US exchanges, undergoes extensive audits and has close cooperation with the SEC. Coinbase general counsel stressed in a recent statement that they were not provided with guidance on crypto, despite making dozens of requests to the SEC.
Chris Burniske says that the increasing pressure on crypto-related activities, including the notice sent to Coinbase, is not turning investors away from the crypto markets. According to Burniske, the regulatory pressure on the industry will eventually strengthen the faith of crypto investors and attract more people to Bitcoin.
“You have Bitcoin, you have Ethereum. Basically they don’t care about these protocols. Last year, they were valued at over $20 trillion in total. 68% of Bitcoin investors have not sold their holdings in over a year. In other words, there are people who do not give up despite all these regulatory pressures. I would even say that they have shifted even more towards Bitcoin, as we have seen since the collapse of the SVB. This is where I think you’re going to see the government’s strategy eventually backfire.”
Burniske also underlines that Bitcoin was created for “moments like this” when trust in the traditional banking system began to wane.
“Bitcoin (BTC) is an alternative to the current system. Ethereum also operates an internet-specific financial system. These are tools for consumers to make a different choice, or at least diversify. There is no solvency risk. There is algorithmic supply. It will not catch the contagion that we currently see in the traditional system, so educating consumers about it is invaluable.”