To Chill or Not To Chill?
The co-founder of the Ethereum blockchain, Vitalik Buterin, has announced that crypto investors might have an experience of what he termed a “crypto winter,” but it doesn’t all consist of bad news for the investors. Vitalik further stated that the crypto winter could open the path into a new digital asset world as crypto prices are presently low. He said that it could give some opportunities with notable potentials for gains when things are set to pick up again.
In an interview granted by Buterin, he said that deep investors into crypto who have stayed long in the market make it possible to welcome the bearish trends. It is possible for them to welcome the bearish market because when the prices eventually rise as targeted for the long-term, everyone will obviously rejoice, but it at the same time attracts short-term investors and speculators.
It should be recalled that the cryptocurrency market plunged following its hitting an all-time high in the early days of November 2021. Resulting from speculators’ and investors’ high expectations of a positive economic report emanating from COVID-19. Consequently, Ethereum slipped by 40% and Bloomberg’s Galaxy Cryptocurrency Index dropped by 45%.
As prices recently rose, a lot of people have witnessed an exponential increase in the value of their assets. The tracking of up to 12,588 various tokens by CoinGecko shows a reminder to everyone that this is beyond a bullish market trend. It is one for the entire cryptocurrency market as well. Manipulations and fraud in the market can, however, damage traders if not correctly used or they follow top traders unguardedly.
Buterin also warned users of the Market pump and dump which happens when traders want to make profits from other people’s losses by pumping up crypto prices before they sell them at lower levels. This creates fear in investors who would think the price might go up again, therefore driving them to buy.
An Opportunity in Crypto Winters
A 28-year-old billionaire in cryptocurrencies has said that it is during winter that most applications go out. It is through that one could see which projects are sustainable in the long run as per their models and the team behind them.
Crypto winters might have been seen by some as a moment of chill for the striving industry, but Buterin said in his interview that he was pleasantly surprised by events in the market over the course of the past year. He is, however, not sure if crypto is still in its second winter phase or it’s simply reflecting the global economic volatility.
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