Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
In 2013, BTC investors had a perfect reason to panic as they saw the flagship crypto fall about 80%. After the crypto’s price plunged, enthusiasts had to wait until 2020 to regain its previous highs. Thus, until 2018, the digital currency market was experiencing a crypto winter.
Crypto Winter refers to a period whereby the prices of Bitcoin and other digital assets remain low after a price crash occurs for long periods.
Some individuals and organizations interested in the so-called exciting new technology are skeptical about blockchain. Yet, others are still trying to make sense of this crypto tragedy. Therefore, Crypto winter is not a hindrance to participating in blockchain to clear the cold air.
Crypto Winter Explained
The word “Winter” refers to “cold” or “missing hotness” in assets or stocks and currencies. It implies a collapsed price of any asset, product, or cash. Compared to “Hot,” interest in any subject has declined. The decline is to the point that prices appear to freeze in time.
A good example of a Crypto Winter is the unpopular crypto crash from late 2017 through 2018. Bitcoin plunged from $20,000 to $3,000 alongside 2,000 other virtual cryptocurrencies.
In November 2021, Bitcoin reached an all-time $69,000 from $5,000 in March 2020. After that, however, it dropped to as low as 29,002 before settling at 32,212. These sell-offs may appear severe, although they are not the worst in Bitcoin’s 14-year history.
Since its inception in 2009, Bitcoin has endured 14 sell-offs above 14%. Six were more than 50%, and three were above 80%. The worst of these sell-offs preceded extended periods of flat trading. This cycle is what is presently referred to as “crypto winter.”
Are We Headed into Crypto Winter 2.0?
Recent occurrences in three major crypto countries – India, China, and the USA- indicate a possible start of the second crypto winter.
During the first crypto winter, rumors about South Korea’s possible ban on crypto initiated the freeze. Additionally, Japan’s largest crypto OTC market got hacked, and things were already snowballing. In the same year, compromised Binance API keys were misused. Then Google, Facebook, and Twitter banned any advertisements of token sales and ICOs.
Crypto Winter 2.0 may have started in May when Ether plunged by 40%, Doge by 45%, and Bitcoin by 30%. It could exhibit a similarity to many factors, such as tweets from Elon Musk.
Moreover, it is in addition to an anti-crypto statement from the People’s Bank of China. Therefore, the start of regulatory activities against Binance may also be a factor.
Commercial banks have refrained from dealing with crypto exchanges in India after an informal directive from the Reserve Bank of India.
Additionally, the Securities and Exchange Commission has cautioned against Bitcoin futures in the US. The Office of the Comptroller of the Currency is also reviewing all previous crypto bank actions.
What’s Next?
Currently, crypto markets are much bigger, and the downfall could have a more devastating impact on the community. It includes all whales, sharks, minnows, and all various sea creatures.
Therefore, we will likely face a long haul before we get back to this year’s highs. However, even if the conditions are different, Crypto Winter 1.0 shows that a quieter period in markets may ironically boost the development of the technology. A lot of significant development occurred from 2018 to 2019. It nurtured projects that were integral to the crypto ecosystem.
Similar design works are essential to enhance privacy while addressing identity issues, reducing transaction costs, and scaling while optimizing decentralization. Moreover, we require a different type of advancement: relationships with large companies, governments, and the masses.
The Adoption Challenge
Some individuals perceive cryptocurrency exclusively as a tool of the rich. Others say it’s a tool for the privileged to hide their assets from the prying hands of the state. However, that is not the case because crypto technology is a public development that can succeed with mass adoption.
Sadly, the public’s trust and acceptance of innovative technology are in jeopardy. That is because many equate crypto with scams, losses, and bubbles.
This price correction may imitate the previous one, which followed the late 2013 bubble. Then, it was a two-year interruption followed by a revival rally in 2016. This rally boosted crypto values in 2017. However, the downturn in 2018 is a more significant blow to public confidence in blockchain than in 2014.
Rebuilding Confidence
The crypto winter is about something other than price decline per se. It’s also about the mainstream, which was finally starting to understand crypto, but they now have second thoughts. Crypto enthusiasts may not outright admit it, but they long for acceptance, perhaps more than adoption.
This shift from mainstream backing to mainstream disapproval echoes the initial coin offering bubble. The bubble disillusioned novice traders with that era’s crypto assurance of easy token riches.
Bitcoin is currently down by about 75% from its highs and 80% lower from its market cap. Such a violent meltdown will cause a significant loss of confidence in the sector.
Government regulators may take a more conservative view of the technology and, likely, a more complex line regulating it. For crypto startups, this may exclude them more from the markets.
Sadly, the crypto winter is already here. As a result, there is a need for more than a sleeves-rolled-up approach to technical development. Community leaders and social media influencers are also responsible for changing the message.
Final Word
Many economics experts have made predictions about the rupture of a speculative bubble in cryptos. What follows is a crypto winter. The Crypto Winter may be looming. However, it may be the necessary tool cryptocurrencies need for sustainability and growth in the future.
Btc
Bitcoin
$62.547
price
price
0.84959%
price change
People are not in it just for a speculative run any longer. Instead, they want to get in it because they count on crypto growth and development.
Previous
Best DeFi Tools That Every Crypto Enthusiast Should Know
Next
How Elrond Makes Smart Contracts Function Seamlessly
Written by
Tanveer Zafar
@taneer
125 posts
More author posts
How Users Earn Cryptocurrency with Instars.com
In recent times, blockchain technology continues to gain traction in almost every industry area, with digital currencies like Bitcoin and Ethereum being the most prominent in the cryptocurrency space. But, as the world evolves, so does the trend in the crypto market. Today, significantly more people are sourcing for new digital currencies that would potentially expand and appreciate. One of these leading platforms is Instars.com, a cryptocurrency that drives the Instar Blockchain. What is Instar? Instar is an innovative digital…
4 years ago
DeFi Yield Protocol Announces KyberDMM Partnership and New Contracts
DeFi Yield Protocol (DYP) has teamed up with KyberDMM DEX to increase token liquidity on Avalanche. In a two-month-long campaign, users may earn up to $300,000 in $DYP and $KNC liquidity mining rewards. DYP and KyberDMM for Increased Liquidity KyberDMM (Kyber Dynamic Market Maker) is a cutting-edge, capital-efficient DEX protocol. Its primary goal is to increase liquidity with amplified pools and maximize returns for liquidity providers (LPs) with dynamic fees. The protocol’s main liquidity mining campaign is "Rainmaker," running on…
4 years ago
TA: What Do the Indicators Say About October’s Market Rally?
October is off to an impressive start for the crypto space. Coin prices are on a significant high, showing possible momentum. However, this isn’t the first time that the market will start strong. Investors are skeptical about this rise, so they will want to check how the market performs. The Chinese Saga Continues The biggest story right now is the Chinese crackdown. This isn’t the first time that China will announce a crackdown on the crypto space, of course. Beijing…
4 years ago
India’s Crypto Market Thrives as Large Institutions and DeFi Dominate
A rise in demand for digital coins in India might help the crypto landscape flourish in the region. For instance, the nation is currently leading the expansion of cryptocurrency markets. Also, a report from Chainalysis showed that India's market grew by 641% over the past year. Fastest-Growing Crypto Region Chainalysis’ records show that Institutional investors are driving India's cryptocurrency market expansion. Additionally, increasing decentralized finance activity has been one of its few catalysts. According to Quantstamp's Sriram, DeFi activity continues…
4 years ago
Brazil Introduces Firm Guidelines on Crypto-Related Financial Crimes
Brazil's Chamber of Deputies imposed new rules on crimes involving cryptocurrencies. The new guidelines include harsher penalties which increase from one to two-thirds. By introducing this law, Brazil could fight against laundering activities using digital currencies. The bill awaits review from the Plenary of the Chamber before passing it into law. A New Age of Regulation in Brazil? As of now, laundering suspects face a jail term of three to ten years. The culprits also attract heavy fines for engaging…
4 years ago
The Best Countries for Crypto Mining Now that China is Out
Cryptocurrency mining remains profitable. However, it has come under significant scrutiny in the past few months. Things took a turn for the worse when the Chinese government hit mining. Beijing cracked down on mining this year by continuing its hardline stance on the crypto industry. A Long Way Here The nuances between China and mining are pretty interesting. For years, Beijing has made it clear that cryptocurrencies aren’t welcome in the country. First, it released a circular in 2017 confirming…
4 years ago
Publish your own article
Guest post article. Guaranteed publishing with just a few clicks
START PUBLISHING ADVERTISE WITH USBrowse categories
Explore trending topics in the crypto community right now.
Bitcoin
SEC Greenlights Multiple Bitcoin ETFs, Signaling Major Leap for Cryptocurrency Markets
The U.S. Securities and Exchange Commission (SEC) has made a landmark decision by approving 11 spot bitcoin exchange-traded funds (ETFs). This move represents a significant moment in the cryptocurrency industry, marking a shift towards greater institutional adoption and accessibility for investors. The approved ETFs include products from major firms such as BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin…
Marius Bogdan Dinu 
@bdinu89
@bdinu89
1 year ago 
596 views
Bitcoin Should be Banned in the United States: Charlie Munger
Berkshire Hathaway’s vice chairman, Charlie Munger, called for a ban on cryptocurrency in the United States on Monday, similar to the one in China. In an op-ed published with the Wall Street Journal, Munger argued that Bitcoin isn’t a currency, commodity, or security, but simply a form of gambling “ with a nearly 100% edge for the house. As such, the enactment of a federal law should ban such things from happening. Munger cited the Chinese communist party’s ban on…
2 years ago 1.5 k views
Tesla’s BTC Positions Remained Unchanged in Q4 of 2022
According to a new earning report from automotive manufacturer Tesla, the company did not sell any of its BTC holdings in the fourth quarter of 2022. Amid speculations that the company had traded BTC during the testing bears, CEO Elon Musk revealed it was yet holding on to its BTC stash. Tesla Maintains Holdings After Initial Sell-Off In Q2 of 2022, Tesla opted to sell 75% of all its BTC. The car manufacturer received close to $950M in exchange. Notably,…
2 years ago 1.5 k views
Here’s When Grayscale Debates the SEC in Court on its Bitcoin Spot ETF
The District of Columbia Court of Appeals has marked a date for when Grayscale and the Securities and Exchange Commission (SEC) may present oral arguments regarding the approval of a Bitcoin spot ETF. Each side will present its case at 9:30 am ET on March 7, with the SEC arguing against the product, and Grayscale arguing in favor. Grayscale VS SEC The court date – revealed in a court order filed on Monday according to CNBC – is much earlier…
2 years ago 1.8 k views
Ethereum
Ethereum’s Zhejiang Staking Withdrawal Testnet for Shanghai is Live
At 15:00 UTC on Wednesday, the much-anticipated Zhejiang testnet for staking withdrawal went live on Ethereum’s Beacon chain. Zhejiang will enable the testing of the Ethereum Improvement Proposal (EIP) 4895 which allows for staking withdrawals. This is in preparation for the network’s next major update, the Shanghai hard fork slated to launch sometime in March. Users Can Make Simulated Withdrawals with Zhejiang In a tweet yesterday, DevOps engineer at Ethereum foundation Barnabas Busa gave details about the Zhejiang testnet slated…
2 years ago 1.6 k views
Ethereum Devs Disagree Over Technical Tweak as Shanghai Upgrade Nears
Post-merge Ethereum users have been eagerly awaiting the commencement of the network’s next major upgrade, Shanghai. However, after over 3 months of prep time, it appears the Shanghai rollout isn’t going as smoothly as expected. What Exactly is the Shanghai Upgrade? In September last year, the much-publicized Ethereum Merge also known as the Ethereum 2.0 upgrade went live. Ethereum underwent some significant changes as its consensus mechanism transitioned from proof-of-work to a cost-efficient proof-of-stake system. However, since the Beacon launch…
2 years ago 1.6 k views
FTX Hacker Converts 50k Stolen ETH to BTC
Per a report from blockchain analysis firm Chainalysis, the attacker behind the Nov 11 FTX exploit, is converting the stolen ETH to Bitcoin. There were muted fears the seemingly inexperienced perpetrator could dump all its ETH holdings. On Sunday, the attacker dumped 50k ETH on-chain, with ETH's price dipping by almost 7%. https://twitter.com/chainalysis/status/1594349583416840199?s=20&t=pgvQHeVytI20eKQ1ls9bxw Hacker Moves 50,000 ETH to New Address Over the past week, the perpetrator had been steadily swapping the cryptocurrencies they had carted off for Ether tokens. This…
3 years ago 1.9 k views
Censorship Concerns: 51% of Ethereum Blocks Now OFAC Compliant
According to new data, over half of the blocks on the Ethereum network now reportedly comply with the US Treasury OFAC’s standards. This comes roughly a month after the platform’s monumental merge update. Phasing Out Tornado Cash The Office of Foreign Assets Control is the intelligence and enforcement agency of the US Treasury Department. Indeed, the OFAC administers and enforces US financial sanctions. A prime example of this is the recent, highly-publicized ban on crypto mixer Tornado Cash. According to…
3 years ago 1.8 k views
Trading
How to Leverage Arbitrage Opportunities in Crypto Markets
Cryptocurrency arbitrage has become an increasingly popular investment strategy as the crypto market grows and evolves. Arbitrage involves taking advantage of pricing discrepancies between markets or exchanges to profit. Investors can leverage profit opportunities by understanding cryptocurrency arbitrage while managing associated risks. In this guide, we'll explore cryptocurrency arbitrage and how it works. A Bitcoin-related example will help us illustrate the concepts of this strategy. What is Arbitrage and How Does it Work in Crypto Markets Crypto arbitrage trading is…
2 years ago 3 k views
The Different Types of Copy Trading in Crypto
Are you interested in trading cryptocurrencies but feel intimidated by the complexity of the process? Copy trading is a great way to get into crypto without needing to be an experienced trader. With copy trading, investors can benefit from the experience and knowledge of more experienced traders, allowing even beginners to succeed. How does copy trading work, and which tips do you need to know to succeed? In this article, we'll explore all aspects of copy trading in crypto. What…
2 years ago 1.7 k views
How to Spot an Unsafe Crypto Exchange
Cryptocurrency exchanges have become increasingly popular as they provide a platform for people to buy and sell digital assets. Unfortunately, not all crypto exchanges are safe or reliable. With the rise of cybercrime and fraud, you must learn to spot an unsafe crypto exchange before investing your money. This guide will help beginners identify and avoid potential risks when selecting a cryptocurrency exchange. The Role of Crypto Exchanges on the Digital Assets Market Cryptocurrency exchanges play a crucial role in…
2 years ago 2.2 k views
What Is Grid Trading in Crypto?
Crypto grid trading has become a popular strategy because of its ability to help traders capitalize on market volatility. Grid trading means you can produce consistent profits by taking advantage of price differences in different markets or time frames. By establishing buy and sell orders at predetermined intervals, you can take advantage of these fluctuations in an automated way. This guide will explore the different aspects of grid trading and provide an overview of its benefits, challenges, and more. Through…
2 years ago 1.6 k views
Tech
Introducing una Messenger: A Paradigm Shift in Blockchain Connectivity
The digital landscape is set for an unprecedented transformation with the introduction of una Messenger, the latest innovation from web3 development powerhouse Wemade. This platform represents an evolution of the "PAPYRUS Messenger," serving as the cornerstone of the ambitious "unagi" initiative, aimed at catalyzing the mass adoption of blockchain technology. The "Unbound Networking & Accelerating Growth Initiative" seeks to bridge the divides between diverse blockchain services and networks, heralding a new era of interconnectedness. A New Frontier in Blockchain Communication…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 574 views
Bit2Me Champions WEMIX Token in Pioneering European Listing
Bit2Me, Spain's premier virtual asset exchange, has recently broadened the horizons for cryptocurrency enthusiasts by listing WEMIX, the cornerstone token of the WEMIX3.0 blockchain ecosystem. This marks a notable achievement as WEMIX's inaugural venture into the European market, emphasizing the token's role in facilitating a range of blockchain-based activities, from gaming transactions to decentralized finance (DeFi) applications. Launched with the intention to democratize access to WEMIX for the 450 million Spanish speakers around the globe, this strategic move aligns with…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 404 views
CryptoVirally Expands with Fresh Crypto Marketing Offers and Cointelegraph Upgrades
In an exciting update for the cryptocurrency marketing landscape, CryptoVirally has announced a series of new entries and enhancements to its already comprehensive range of services. These updates, aimed at providing tailored marketing solutions for crypto projects, include new limited-time offers and expanded options for Cointelegraph publications. Limited Offers: A Game-Changer in Crypto Marketing CryptoVirally's limited offers section presents an enticing opportunity for crypto projects to leverage high-impact marketing services at discounted rates. These offers, available for a limited period,…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 465 views
Breaking Boundaries in Blockchain: WEMIX’s ‘una Wallet’ Sets New Standard for Multi-Chain Asset Management
The WEMIX Foundation has unveiled 'una Wallet,' a revolutionary digital wallet designed to offer unparalleled convenience and security in managing digital assets across various blockchain networks. The announcement, made on January 17, 2024, signifies a new era in the seamless integration of multiple blockchain protocols, including Arbitrum, Avalanche, BNB Smart Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX3.0. 'una Wallet' is more than just a digital wallet; it represents the culmination of WEMIX's innovative efforts in the blockchain space. It serves…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 592 views