Companies of the cryptocurrency industry is now forced to freeze employment, or even to lay off many of their employees. It is natural, the market be in constant decline for several months during this period of ” crypto winter “Even though their reputation is tarnished, will they emerge stronger at the end of this difficult period?”
The concept of crypto winter
Cryptocurrency prices sometimes experience remarkable declines. This is a universal fact in the market for digital assets that spares no business, even the most powerful. This is the case with Coinbase, Gemini or even Bitso. Bitcoin, the largest cryptocurrency, even experienced an alarming decline after a peak during the Covid-19 pandemic. It is this cooling period that extends over several months that is called ” crypto winter or crypto winter in French.
It was in 2018 that the phrase ” crypto winter made sense. At that time, the market experienced a very worrying decline, for several months. Bitcoin (BTC) even fell by 80% and the majority of digital currencies collapsed.
Many investors preferred to migrate to safer assets as the bear crisis revealed the volatile nature of cryptocurrencies. In fact, in difficult times, many people jump to a conclusion by mentioning that it is the end of the cryptocurrency market.
However, digital assets are far from reaching the bottom, and it was clearly just an accident. In fact, the market in 2019 was able to recover, slowly but surely. In addition, he received support from some powerful banking institutions. Large investment funds have also contributed to growth.
The crypto winter is here, but it looks less harsh
There is no doubt that crypto winter exists. The figures and facts also testify first and foremost to the layoffs that are taking place in the large companies in the sector. This is the case with Gemini, which has a firing percentage of 10%. This is also the case with Coinbase, which is introducing a layoff. The dismissal of staff extends to Argentina, where the rate in Buenbit reaches 45%.
Despite all the difficulties and concerns associated with this recession, the situation is less alarming than it was in 2018. In addition, Dan Held, director of marketing development at Kraken, confirms that even though the crypto winter is here, it should be noticeably less violent than in the latest editions.
There is really no need to worry, because despite its volatility, cryptocurrency is becoming more and more mature thanks to the intervention of several technological players. In addition, the presence of multi-billion dollar venture capital funds largely ensures the survival of the ecosystem in times of crisis. Moreover, the cryptocurrency market is not the only one experiencing instability right now. Other technology stocks such as Peloton (PTON) or Zoom (ZM) are also undamaged.
The crypto-winter is a difficult time for all investors in cryptocurrency. But he does not mark not the end of the market and seasoned investors is aware of it. Indeed, such a period represents an opportunity for every ecosystem to take support and build better to emerge stronger than before.
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Interested in investing and financial markets after a business school in Chambéry, the passion for cryptocurrency was obvious. Blockchain is definitely the universal tool of tomorrow.