It has been several months of a challenge for crypto investors since Bitcoin fell from its top level of 69,000; on top of that, many coins have followed in the footsteps of BTC prices.
The entire crypto market has since lost more than $ 1 trillion in value, and many experts believe that more will come and that this will not be the last in the wave; many people are trying to understand what awaits us and whether we will fall into another terrible crypto winter.
Cold world for crypto…
The entire crypto market has lost about $ 1 trillion in value since November, around the time of the highest bitcoin level in history, and other tokens like ether and saltworks have followed digital currency number one and traded sharply lower. Ethereum has more than halved in value since reaching its peak in November, while Solana suffered an even steeper decline, falling 65 percent. Back in 2018, bitcoin went through what many now call ‘crypto winter’, which witnessed an 80 percent drop in bitcoin; can this be another case of current price action
BTC: Bitcoin fighting to break 40k after hitting all time high in November 2021. | BTC:USDtradingview.com
David Marcus, the former head of cryptocurrency on Facebook (now Meta), seems to have suggested that he believes crypto winter has already arrived. In a tweet earlier this week, he said: “During the crypto winter, the best entrepreneurs build better companies. This is again a time to focus on solving real problems with token pumping. ”
Nadya Ivanova, Chief Operating Officer of BNP Paribas, had the opposite view of crypto winter, stating that “over the past year – especially with all the attention in this market – many developers seem to have been hampered by easy profits from speculation in NFTs ( irreplaceable tokens) and other digital means. The cooling-off period could actually be an opportunity to start building the foundations of the market, ”Ivanova told CNBC’s Squawk Box Europe.
Hope for a better day…
Many coins experience the same fate as stocks, as do large ones, primarily the stock market; many investors are facing fears of strict federal regulations and adjusting interest rates that could do more harm than good if you rose this year. The US Federal Reserve is considering such moves in response to rising inflation, and some analysts say it could lead to an end to an era of ultra-cheap money and incredible valuations – especially in high-growth sectors such as technology, which benefit from lower rates because companies often borrow to invest in their business.
Vijay Ayyar, vice president of corporate development and international business at cryptocurrency exchange Luno, believes that the recent decline in cryptocurrencies is more of a “repair” than a continuous decline. He also stated that looking ahead, the key level for bitcoin is $ 30,000. If it closes below that point in a week or more, “that would definitely indicate a high probability of a bear market,” he said. A drop of about 80 percent from the recent peak of bitcoin would indicate a price of less than $ 15,000. Ayyar doesn’t think such a scenario is on the table.