HomeBitcoin NewsIs a Crypto Winter Coming Our Way? Analysts Weigh In

Is a Crypto Winter Coming Our Way? Analysts Weigh In

Date:

Related stories

BTC Can Hit $100,000 Soon and $150,000 If Trump Wins, Predicts Standard Chartered

Standard Chartered, the British financial institution, claims bitcoin can...
spot_imgspot_img

Bitcoin and several leading digital currencies have experienced heavy price drops in recent days. Many analysts now fear that things are going to get a lot worse, and that a crypto winter may potentially be heading our way.

Analysts Are Worried About a Crypto Winter

On Monday, bitcoin briefly fell below the $33,000 mark, meaning it reached its lowest peak since last July. That was a time when bitcoin was trading below $30,000 – just a few months after hitting a new price point of roughly $64,000 per unit. In the meantime, the entire crypto market is now about $1 trillion less in overall valuation. Ethereum has fallen by more than half since reaching a new price peak last November, while Solana has fallen by as much as 65 percent.

As a result, fears of a crypto winter are beginning to grow. Many analysts refer to a crypto winter as a major bear market that’s set to last a good while. Several feel that 2022 is likely to bear a lot of similarities with 2018, which saw bitcoin and several other leading digital currencies lose a lot of value after hitting new peaks just a few months before in 2017.

In December of that year, bitcoin had reached an all-time high of nearly $20,000 per unit. From there, however, the currency began to incur a series of drops that less than a year later, left the coin virtually valueless and trading in the $3,000 range. Overall, it’s believed that bitcoin fell by as much as 70 percent over the course of 11 months.

Many think that 2022 is on the verge of bringing bitcoin and several other leading digital assets down to new lows. However, David Marcus – the former head of blockchain at social media giant Facebook – commented that he feels if a crypto winter does arrive, it’s likely to make a lot of digital currency companies improve themselves. He says that during harsh economic circumstances is when many digital currency firms tend to implement new tactics that improve their operations and make them stronger.

He says:

It’s during crypto winters that the best entrepreneurs build the better companies. This is the time again to focus on solving real problems vs. pumping tokens.

Maybe Coins Are Just “Cooling Off”

Nadya Ivanova – chief operating officer at tech firm L’Atelier – says that while she doesn’t believe a crypto winter is here, she does think that bitcoin and many leading cryptocurrencies are entering cooling off periods given how strong 2020 and 2021 were. She says:

Over the last year — especially with all the hype in this market — a lot of developers seem to have been distracted by the easy gains from speculation in NFTs (non-fungible tokens) and other digital assets. A cooling off period might actually be an opportunity to start building the fundamentals of the market again.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img