Are We Near a Crypto Winter? Here’s What History Tells Us | by Pavle Marinkovic | Feb, 2022

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Let’s start by saying that the recent crash doesn’t just involve the crypto market.

Several macro factors are involved in the crash across markets.

The fundamentals of crypto haven’t changed.

But other things have changed.

We have a new investor profile.

In the last bull run, investors were mainly “average Joes”.

They didn’t have the same knowledge about cryptos as we have today. People just entered to get onboard the latest trend and purchased whatever sounded cool. Some overleveraged their way in and used sketchy exchanges just to see their hopes crushed in 2018.

Today, crypto investors have evolved.

They have many more online resources to manage their portfolio and those wild swings we’ve grown accustomed to.

However, the market is not retail-driven these days.

A new type of investor has joined the markets, the institutional investor. More than $60 billion are managed by crypto funds like Grayscale. The average Joe can’t compete with that amount of resources.

So next time you see the market, keep in mind that you’re competing with the likes of BlackRock, Morgan Stanley, BNY Mellon, JP Morgan, Soros Fund Management, and many more. Oh and also add to that list macro investors like Paul Tudor Jones, Bill Miller, and corporate firms like MicroStrategy, Tesla, Block, among others.

They are larger, long-term hodlers, and more resilient investors (less likely to sell in large market falls).

The investor profile has shifted from a small group of techies, to retail interest, ending up with big institutional investors today.

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