We all know that cryptocurrencies have seen better days. Lately, all the cryptocurrencies have been thriving to gain the credibility they had a few years ago. This year has been challenging for the crypto market.
The famous cryptocurrency Bitcoin (BTC) has been hovering around $20,000 nowadays, which is 70% off its high back in November 2021. It’s just not only Bitcoin that has been feeling the downward pressure. Others like Ethereum (ETH), Polygon (MATIC), Cardano (ADA), etc., have been 60% more off than last year.
Blockchain experts have already called this the next Crypto Winter after the last one, which lasted nearly three years, from February 2018 to December 2020.
What is Crypto Winter?
Crypto Winter, in terms of the cryptocurrency market, is referred to the steady and unstable growth where the market seems to be unprofitable. Defining it further, the crypto winter refers to when the prices contract and remain low for a pervasive period.
Cryptocurrencies aren’t the only thing suffering in this long winter. The people and companies behind it are also facing difficulties as well. Major blockchain and crypto companies have witnessed and seen profound losses. Even the leading NFT marketplace, OpenSea, had to cut its staff by 30% during this year’s summer.
Advantages of Crypto Winter
It’s not the first time the market has settled over a crypto winter. From such experience, we know that the crypto winter is much like the conventional bear market because the results are similar.
Due to the long term of this crypto winter, many young startups have weeded out. Thus, indirectly allowing the top companies to prove and mature their crypto products.
Will Crypto Come Roaring Back?
When it comes down to predicting the crypto winter’s end and the crypto market’s future, many experts have pointed out that more essential cryptocurrencies will prevail.
Many people and investors have stopped buying cryptocurrency due to the current market situation. Whereas some investors love the pullback, viewing it as a chance to double down on the crypto market for the long term. A few analysts predict that the crypto winter will likely end in the earlier months of 2023.