Predictions of crypto investors might be materializing as bitcoin begins to plunge – the worst fear starts to become reality – is “crypto winter” here?
Bitcoin – the largest virtual currency of the world plunged below $33,000 on Monday. Bitcoin hit its lowest since July 2021.
It did recover to a stable $36000 but was down 50% since November 2021 when it reached its highest of $69,000.
Ether and Solana also followed the downward trend of bitcoin, doping low. Ether has almost halved since it reached its maximum in November 2021, whereas, Solana stepped down further to a whopping 65%.
This dipping down of valuation was predicted as “crypto winter” – a “phrase to major bear markets in the young digital currency market’s history”. The crypto winter phenomena occurred in late 2017 and early 2018 as well when the bitcoin crashed down to about 80% – an all-time high.
David Marcus – ex-head of crypto at Facebook head Meta admitted that crypto winter has arrived! “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.”
Nadya Ivanova, chief operating officer of BNP Paribas – a tech research firm L’Atelier, is not convinced about crypto winter. She says the market is “now in a cooling-off period which might not be so bad.”
“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,” Ivanova said.