Warning of ‘crypto warning’ threatens already-shaky crypto market

By Team Tech Outlook Published on January 25, 2022, 13:21 IST

High inflation and the new Covid variant have triggered collapse of global markets, and crypto is no exception. Mentions of ‘crypto winter’ and ‘crypto ice age’ are trending on social media.

Regular value erosions and markets falling in the red on a daily basis have been witnessed consistently in 2022. On Jan 25th, Bitcoin rose 1.43% to trade at Rs 29,52,415 and Ethereum fell by 2.65% to Rs 1,95,952.1. Bitcoin’s 7 day low was on Jan 23rd, at 203.99k transactions and ethereum had a 52 week low of $1,207.50. XRP is currently at $0.592201 with a 2.15% decrease.

Crypto winter is a term that indicates a prolonged bear market- sharp downfall, accompanied by a drop in trading and market stagnation. This crypto season is reminiscent of the crypto market in 2018, when Bitcoin fell by 80% to a mere $3,100. However, the difference between 2018 and now is that investments have remained strong. For example, Andreeseen Horowitz is reportedly attempting to raise $4.5 billion to initiate crypto-funds. Walmart Inc. is trying to introduce its own virtual currency and NFT system. Albeit, incase the slump continues, interest in the investing will consequently deteriorate.

Bitcoin fell to more than half of its price last week. Ethereum, N, Solana, cardano, etc have all faces losses between 20 to 30%. J P Morgan issued a blunt price warning about Ethereum. Further, expected regulations by the Fed, etc will only catalyse the onset of this ‘ice age’.