Chris Burniske Says Ethereum (ETH) Could Have a Surprise Rally This Cycle if One Key Event Takes Place

The former head of crypto at ARK Invest tells his 292,200 followers on the social media platform X that traditional finance (TradFi) may suddenly rush into Ethereum for the project's fundamentals, sparking a massive rally.

Renowned crypto investor Chris Burniske has shared his thoughts on what could be in store for Ethereum (ETH) and traditional finance (TradFi) this cycle.

In a recent post to his 292,200 followers on the social media platform X, Burniske discussed the possibility of a surprise rally for ETH if TradFi were to suddenly recognize the project’s fundamentals. He noted that this could lead to a massive rally for the second-largest cryptocurrency.

“Don’t think ETH outperforms SOL this bull [market cycle], but extreme sentiment sets it up to surprise – could still see it outperforming BTC from here (call me a dreamer). It’s less liquid than BTC, and once TradFi groks it’s a ‘growth asset with a healthy dividend,’ things could get….”

However, the investor went on to highlight a contrasting scenario, suggesting that ETH may continue to experience relative underperformance for the time being.

“The counter to this is last cycle was painful for BTC, as an excess of arrogance in the ’18/19 bear [market] led it to fall out of touch with the market in ’21 (it was called ‘boomer coin’), later leading to a renaissance. Could argue that this cycle is ETH’s turn to soul search.”

Burniske also shared his thoughts on the recently launched spot Ethereum exchange-traded funds (ETFs), predicting that they will likely experience a similar strong trend of outflows as the spot BTC ETFs, which launched in January.

“Don’t forget BTC dipped for a short period after its ETFs launched as selling out of GBTC [Grayscale Bitcoin Trust] was immense. At the moment, it looks like ETH is following a similar pattern with ETHE [Grayscale Ethereum Trust] exits, before sustained buying flows into these ETFs likely take over.”

At the time of writing, ETH is trading at $3,280, up more than 1% in the last 24 hours.

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