The aftershocks continue to jolt major crypto exchanges and online finance portals following Bitcoin’s (BTC) continued slump referred to by experts as “crypto winter” late in 2018 for its disconcerting consequence to the global market.
Bitcoin plunged more than 80 percent in the last four quarters, succumbing to a consistent slide since it reached an all-time peak of nearly $20,000 in late 2017, pulling down the broader industry down with it as well as fanning negative sentiments among key market players.
The darling of the global crypto trade, Bitcoin seemed poised to lose more of its appeal if it fails to extricate itself from this deepening hole. This retreat under the $3,500 mark as of Thursday only solidifies the growing perception that it is no longer a safe-haven investment.
Early yesterday, the chief executive of digital identity software firm Civic, set off an alarm that the crypto winter could turn “nuclear” if nothing is done to stop bitcoin from worsening.
On Twitter, Civic chief executive officer Vinny Lingham disclosed that “If we break below the $3,000 level, crypto winter will become a crypto nuclear winter for bitcoin.”
Indeed, things could go further south if the crypto is left unattended, so to speak. In fact, BTC has already dipped beyond the point where the volume of energy disbursed to mine it far outweighs its current market value.
The tipping point came just two months earlier when bitcoin fell from a steady $6,600 and stumbled to levels that left a huge number of miners halting their operations – an indication that simply confirms that a nuclear winter is not far-fetched.
Although pockets remain operational in some key sectors, the current situation of the wider markets means mining has significantly decreased.
Meanwhile, bitcoin has been hovering around the $3,500 level in the past four weeks, hitting lows of $3,310 as of Monday, based on prices by Luxembourg-headquartered Bitstamp exchange.
The crypto market has lost a whopping $400 billion in total value since last year as adoption waned and finance firms set in place stricter measures to put bitcoin and its key counterparts on hold.
Could a nuclear winter be in the offing? How’s that going to alter the entire crypto landscape? Share us your thoughts.