Although the correlation of cryptocurrencies with many stocks has worried investors recently, some analysts' confidence in cryptocurrencies continues. Chris Burniske, a market analyst and Placeholder VC partner, claimed that Bitcoin and Ethereum will not experience the big drops that the stock market is likely to experience.
Evaluating the course of the two largest cryptocurrencies on his Twitter account, Burniske said that both Bitcoin and Ethereum fell by about 40% from their own highs, but this figure was 60% to 80% in many fast-growing stocks. “Both of them have endured these falls very well,” Burniske said.
However, stating that the strength of the crypto money market is relative and if the stock market falls further, the crypto money will follow, Burniske commented that the two big cryptocurrencies can see 20 thousand (BTC) and 1500 (ETH) dollars in the worst scenario.
"The stamina of cryptocurrencies is relative. It can be temporary. There may be room to go further down. In the worst 'bear' scenario here, we can see Bitcoin at 20 thousand dollars and Ethereum at 1500 dollars, but even this is about % of the ATH levels of the two cryptocurrencies. 70 would mean going back."
Burniske also stated that Bitcoin will be a hedge against inflation, Ethereum will be a good return tool in the coming period, and the increasing adoption of cryptocurrencies makes this asset class much more resilient against stocks.
Bitcoin price hovered around $39,201 at the time of writing, while BTC's 24-hour trading volume was $27,744,233,826. BTC price has increased by 2.5% in the last 24 hours. Ethereum price is around $2,858. ETH's last 24-hour trading volume is $14,033,699,150. Ethereum (ETH) price is up 1.7% in the last 24 hours.