Crypto winter 2022: Here’s what crypto industry veterans expect
As the total cryptocurrency market capitalization dipped below $2 trillion last week, major crypto executives have been increasingly talking about a potential continuous bear market or a “crypto winter.”
Contrary to the expectations of many in the crypto market, Bitcoin (BTC) failed to surge above $68,000 in 2021 and continued dropping below $40,000 in early 2022, causing significant losses for big crypto investors such as MicroStrategy.
However, a possible crypto winter could be pretty helpful for the industry by giving a boost in improving the technology, according to Vitalik Buterin, co-founder of the Ethereum blockchain. Lower cryptocurrency prices could contribute to nurturing long-term sustainable projects while removing short-term speculative attention, Buterin said in a Bloomberg interview on Saturday:
The 28-year-old cryptocurrency billionaire pointed out that people who are “deep into crypto, and especially building things,” actually welcome a bear market. “They welcome the bear market because when there are these long periods of prices moving up by huge amounts as it does — it does obviously make a lot of people happy — but it does also tend to invite a lot of very short-term speculative attention,” Buterin added.
If true, cryptocurrency projects will definitely have enough time to improve technology until the next rally as some crypto experts believe that the next bull market will not arrive until late 2024.
Du Jun, co-founder of Huobi crypto exchange, believes that the next Bitcoin bull run will not happen until 2024 and is likely to occur after Bitcoin’s fourth halving, which is expected to take place in July 2024.
All three previous BTC halvings, including the previous one that happened in 2020, triggered
Read more on cointelegraph.com
