Crypto Winter: the great fear of an investor…

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It’s been a tough few months for crypto investors since Bitcoin fell from its all-time high of 69,000; on top of that, many coins have followed in the footsteps of BTC’s price action.

The entire crypto market has lost over $1 trillion in value since then, and many experts believe more are to come and this won’t be the last of the wave; many people are scrambling to figure out what is to come and if we are going to fall into another dreaded crypto winter.

Related Reading | DOGE Down: Descending Dogecoin Pattern Predicts Deadly Fall

Cold world for crypto…

The entire crypto market has lost around $1 trillion in value since November, around the time bitcoins hit an all-time high, and other tokens such as ether and solana followed the number one digital currency to trade sharply lower. Ethereum has more than halved its value since hitting its peak in November, while Solana has suffered an even steeper decline, dropping 65%. In 2018, bitcoin went through what many are now calling the “crypto winter,” which saw bitcoin witness an 80% drop; could this be another case of the current price action

BTC: Bitcoin is fighting to break above 40,000 after hitting an all-time high in November 2021. | BTC:USDtradingview.com

David Marcus, the former head of crypto at Facebook (now Meta), seemed to suggest that he thinks a crypto winter has already arrived. In a tweet earlier this week, he said: It’s during the crypto winters that the best entrepreneurs build the best businesses. Now is the time to focus on solving real problems with token pumping.

Nadya Ivanova, chief operating officer at BNP Paribas, had an opposing view on a crypto winter, saying that over the past year, especially with all the hype in this market, many 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 could actually be an opportunity to start building market fundamentals, Ivanova told CNBC’s Squawk Box Europe.

Hope for a better day…

Many coins suffer the same fate as stocks as the big ones suffer, most notably the stock market; many investors face fears of tough federal regulations and interest rate adjustments that could do more harm than help if you go big last year. The U.S. central bank is considering such moves in response to soaring inflation, and some analysts say it could spell the end of the era of ultra-cheap money and sky-high valuations, especially in high-growth sectors like technology, which benefit from lower rates since companies often borrow funds to invest in their business.

Vijay Ayyar, VP of Corporate and International Development at Crypto Exchange Luno, believes the recent crypto plunge is more of a correction than a lasting downturn. He also said that looking forward, a key level to watch for bitcoin is $30,000. If it closes below that point in a week or more, that would certainly indicate a high likelihood of a bear market, he said. A decline of around 80% from bitcoin’s recent peak would indicate a price below $15,000. Ayyar doesn’t think such a scenario is on the table.

Related Reading | Tesla report shows bitcoin holdings unchanged at $1.2 billion

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