Winter is ending and a new phase in the world of crypto industry is coming. In this article, let’s look at what happened during the winter period.
What was?
The crypto-winter. It’s been almost 5 years since the first crypto-winter and now, in 2022, it’s back again: winter has come in the summer. “Crypto-winter” is a period of time when the crypto market experiences a prolonged and severe downturn in prices and investor sentiment. In 2022, the crypto-winter stretched for a very long time and remained unpleasant for just as long: the value of cryptocurrencies and related assets was at all-time lows.
Sam Bankman-Fried and his “retreats.” How not to remember the “star” of 2022, the founder of the collapsed FTX empire, Sam Bankman-Fried. The fall of his company led to a prolonged stagnation and decline of everything in the markets of both cryptocurrencies and NFT. Despite being accused of orchestrating one of the biggest financial frauds in history and the prospect of spending a lifetime in jail, he continues to post tweets and give media interviews, all in an effort to defend himself in the court of public opinion.
Our favorite Bitcoin. Bitcoin hit a new bottom this winter as its value dropped to a record $14,000. BTC, the most significant token by market value, fell more than 60 percent, leading to a collapse in digital assets that saw its total market value drop about $2 trillion from its highs. As of this writing, the situation has improved as investor sentiment has become more optimistic about crypto with the new year. It’s worth noting that the bulls are trying to break into the market, pushing the lingering bears to rest. Bitcoin is now trading at $23,000.
Ethereum, ETH or Ether. After Merge and with the Shangai updаte expected in 2023, Ethereum is becoming increasingly attractive to buyers and investors. The overall state of the currency, as well as others, was affected by the FTX crash in late 2022. There was no significant movement in the price of Ethereum during the winter. Although the price of ETH was unstable, in the long run it tended to grow steadily. Today, 1 ETH = $1,600.
Smaller altcoins. Other crypto-assets like Cardano, Ripple, Dogecoin fell in price throughout the winter. Also, there were tokens that almost flew off the market: Solana lost more than half of its value after FTX collapsed in November 2022, but it recently managed to make a relative comeback, rising to $26 on Feb. 20. Undoubtedly, someone lost their stakes and another made a profit. Predictions for 2023 for altcoins are positive; apparently many are tired of stagnation and want to move forward with the tokens.
The Crybex team expects the bull market to turn the tide soon, as investors and traders take advantage of a potentially less risky opportunity. This could lead to a surge in profits and liquidity, further strengthening the industry. If that happens, it will attract new players to the crypto industry who can bring something new to the usual crypto life.
