Are we still in a “ Crypto winter ”

What is a “ Crypto winter “ and are we experiencing one ?

“ Crypto winter is a period of falling cryptocurrency prices compared to prior highs. And  remaining low for weeks or months, This is similar to a bear market in the stock market. “

Evidence of this can be seen from recent trends in the digital currency market that has proven it’s not immune to the global economy’s falls. The signs and effects can also be seen in the collapse of projects like TerraUSD , the liquidation of hedge fund Three Arrows Capital, & the most outstanding of all Bitcoin, the world’s biggest digital coin, is off 70% from a November all-time high of nearly $69,000.

Is it ending soon?

Despite heavy losses this year, there are some signs that Bitcoin – the lead cryptocurrency and still the most dominant – is in a comeback position. Some people in the industry believe this crypto winter will be shorter than previous ones, partly because corporates and financial institutions have entered the market. 

These institutions have built up the technology, staff and legal arrangements they need to invest in crypto, meaning they have the infrastructure for future transactions, even if they are selling now. However, analysts expect there to be some more pain ahead as crypto firms struggle to pay down their debts and process client withdrawals.

Conclusion 

While the market looks healthier than just a couple of weeks ago, it’s still far from last November’s peak, which reached $3 trillion. In an economy with high inflation and recession risks looming.

Despite some recent wins, crypto winter has yet to thaw.