What Is The Bitcoins (BTC) Future After This Crypto Winter?

Bitcoin BTC Future After Crypto Winter

✍️ 28 November, 2022 - 19:08 👤 Editor: Jakub Motyka

Bitcoin (BTC) could rise from the prolonged crypto winter and claim new highs, according to market experts. Crypto winter is when prices contract and remain down for a long period. The onset started in 2022, partly caused by political instability when Russia invaded Ukraine.

The events caused a surge in energy and commodity prices, pushing investors away from riskier assets like cryptos. More instability came with the collapse of TerraUSD and the resulting meltdown of cryptocurrency LUNA – a payment token that maintained its peg to USD. As if that was not enough, several crypto lenders, including Voyager Digital, Celsius, and Three Arrows Capital, went bankrupt.

Macroeconomic and Microeconomic Factors: How is BTC Coping With The Crypto Winter?

A greater BTC volatility was seen in the second quarter when major investors sold their holdings, according to market insights from Nasdaq. For instance, according to its financial report, Tesla disposed of $936 million worth of BTC in the period.

Bitcoin BTCSource: Unsplash
Bitcoin (BTC) has dropped 64% year-to-date from a high of $46,300.

However, the ongoing crypto winter is common to the industry. Between 2018 and 2020, the industry faced the same situation, largely caused by suspicious ICOs.

Crypto winter usually starts with major price corrections across the sector. It is currently the case with Bitcoin, which has dropped 64% year-to-date from a high of $46,300. The second largest crypto, ether, is also down 67%.

FTX Fall And The Impact On Bitcoin

Although the market is optimistic that crypto spring could be around the corner, the events around the collapse of the derivative exchange FTX shook investors' confidence even further. The event wiped off 22% in BTC. The altcoins were not spared either. FTT (the native token of FTX) and Solana lost 93% and 59%, respectively.

Nonetheless, experts believe the crypto winter is an opportunity for strong projects to prevail. Jake Weiner, the founder of Uncommon, opined that "we saw a lot of new startups throughout the industry over the past year, and many of them will fail." Considering BTC's position, the token could see positive gains in the next leg up.

After reading this article, also check the Bitcoin price prediction for 2025, the BTC price prediction for 2030, and what the rainbow chart shows about the future of this crypto.

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Jared Kirui
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Image sources:

  • bitcoin-btc-cryptocurrency: Unsplash
  • bitcoin-btc-future-after-crypto-winter: Unsplash

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