Successive Drops of Bitcoin Warn of a New “Crypto Winter”
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Bitcoin is facing one of its worst moments. In 6 months, the cryptocurrency has lost more than half its value, and since the beginning of the year the digital asset has experienced a decline. But the real problem arose in May, when the cryptocurrency reached a margin of $30,000 and never left.
Bitcoin is facing what the cryptocurrency market calls a “crypto winter.” The term is used when a digital asset experiences prolonged periods of successive declines and is unable to respond to downturns.
It is common for this type of phenomenon to occur after a significant rally, as is the case with Bitcoin, which, after hitting an all-time high of $69,000, has shown several drops.
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The explanation for the decline of the major cryptocurrency remains the same: the macroeconomic scenario. Of the facts, the most important of which are the recent jump in global inflation and the war in Ukraine, which caused high prices for many products and instability in Economie from several countries.
As an unsupported asset, any change in the global scenario affects Bitcoin. To make matters worse, the insecurity in the cryptocurrency market is helping the assets drop even more. In the opinion of Coinext CEO, Artur Ribeiro, the crypto winter began in January, when the global market began to feel uncertain:
The war and a global redefinition of monetary policy came with sharp inflation. This shook the financial market as a whole, with a very large outflow of capital into fixed income. And the cryptocurrency market is not exempt from this influence.”Ribeiro said in an interview with E-Investidor.
Despite the decline, some experts believe this expression is worrisome. Many investors believe that after global insecurity, the value of bitcoin will rise again, and they are taking advantage of the downturn to buy bitcoins.
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