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The former lead of Ark Invest's crypto wing, in his most recent tweet, provided his opinion on the current state of the digital assets industry. Most importantly, the analyst sees the bright light at the end of the bear market and believes that crypto will grow again.
According to Burniske, there is a lot of negativity in the space right now, and there is no point in focusing on it. Instead, market participants and the crypto community should take a break and return when the industry grows again. However, there is lots of work to do and it will take some time, says the analyst, most likely referring to the average market cycle that lasts for around four years in crypto.
Lots of negativity on the timeline, get some hugs, touch grass, float in water — know that crypto will grow again, though there’s lots of work to do and it will take time. And while it’s important, it is not everything.
— Chris Burniske (@cburniske) November 28, 2022
Despite the problematic state of the cryptocurrency market, technologies are still growing tremendously, and the short-term pain the market is experiencing right now is temporary and has nothing to do with the fundamental value of the industry and the technologies it provides.
Things that go under radar
Burniske's post is not the only thing that shows how devastated the whole industry is right now. Various sentiment or social indicators suggest that the crypto community remains in fear after the FTX crash.
Cryptocurrency exchange outflows remain at extremely high levels as investors move funds away from centralized and decentralized exchanges in a panic. Their main concern is a repeat of the FTX situation, where users' funds were frozen in the exchange.
Usually, the lack of positivity on the market quickly turns into euphoria in case of an upward volatility spike on the market. Unfortunately, there is no way to tell with certainly when the cryptocurrency market will enter the recovery phase, especially as long as investors remain cautious about digital investment tools.
Vladislav Sopov