Is the crypto winter over, or are new drops on the horizon?

The year 2022 opened with a tiny drop in the price of major crypto-currencies, which then turned into a larger drop soon after, which only recently stopped.

It was clear that we were witnessing a fairly severe crypto winter, as several hundred million dollars were wiped off the overall value of the crypto market. All crypto-currencies went into the red, investors lost significant amounts of money, and in that same time period, regulatory scrutiny increased.

It’s safe to say that 2022, or at least most of this year, hasn’t been one of the best for the crypto-currency market. Especially when compared to the previous two years, which saw a significant rise, and although there were some serious drops, the recoveries were much larger.

It is to be expected that a winter in crypto-currencies does not last forever, the crypto-currency market is quite changeable, and the situation is different almost every day. That’s why, after the storm, some say that the calm will come, and for them, that calm is already here.

After such a severe winter as we have experienced in recent months, various market analysts say that this one is ending, and a much more fruitful spring for the market will be inaugurated.

Is the crypto winter really over?

It may be too early to say whether or not the crypto winter is over, at least for now. While such large market declines are usually followed by considerable growth, based on how crypto-currencies have performed in the past, this does not mean that crypto winter is over.

Read:  Hungarian government fires weather agency chief after erroneous forecast

There’s no denying that conditions have been a bit more favorable for crypto-currencies in recent days. And in this regard, some analysts postulate that this could be a short-term movement that will not represent sustained growth in the medium to long term, which postulates that the winter is not really over.

To understand this theory a bit, it is necessary to go back in time. Last year, more precisely in early November, the price of bitcoin exceeded $ 65,000, and managed to touch $ 69,000, its highest level in the history of crypto-currencies. Now, nearly a year later, the price of bitcoin is a far cry from the peak it reached a year ago.

Without going back too far, last July the price of bitcoin fell below $20,000, throwing the market and any investors who hadn’t liquidated their positions into turmoil. While the price of bitcoin has managed to recover a bit, it hasn’t really been able to cross the $25,000 mark.

In fact, at the time of this publication, the crypto-currency stands at $19,335.23. So it is clear that the situation in July, which was one of the most worrying of the year, is repeated, leaving us with a not-so-clear sign of recovery.

Read:  Peru proposes chemical castration for rapists

Are further falls on the horizon?

What’s happening in the market is not only affecting bitcoin, but all crypto-currencies, such as Ethereum, which is the second largest crypto-currency in the market. If we look at its levels throughout the year, from January 2022 to now, it has lost about 59% of its initial value.

This has been repeated in countless crypto-currencies, which does not leave investors and regulators indifferent. Moreover, if we look at the most recent levels of bitcoin, which is the leading crypto-currency, we realize that winter is probably still here, because a fall as severe as this year’s will not be recovered so easily.

In addition, various analysts have indicated that the market may suffer a bit more. It is likely that we will soon see further falls and a slightly bloodier period for crypto-currencies.

A floor has not yet been set, but it is known that if the price of bitcoin falls further, the fall will be almost uncontrollable. But hope for a recovery is never lost, or at least the possibility that the price of bitcoin will remain at a stable and safe level that does not put investors at risk.

The Best Online Bookmakers April 12 2024

BetMGM Casino