The crypto space has been having an extended bearish run. The crypto market cap fell below $2 trillion. The extended bearish sentiment is contrary to what was hoped for.
BTC failed to go beyond $68,000. In fact, it fell below $40,000 early this year. Expectedly, investors and traders in crypto have suffered significant losses.
There are always people who see some light even in the gloomiest of nights. Vitalik Buterin the founder of Ethereum is one of them. He feels that this crypto winter is actually good. It gives the crypto ecosystem time to work on improving the technology powering crypto. It gives the ecosystem time to work on projects that will help crypto in the long term. A bearish market takes the focus away from short-term speculation.
Buterin added that people truly involved in making the crypto space better, actually welcome the crypto winter. It gives such people time to think of the long-term health of the system. Such initiatives makes the space more sustainable.
Analysts believe that the current bearish trend will persist for a long time. This gives people ample time to work on long-term projects. The bearish trend is likely to reverse only in 2024.
The founder of the Huobi crypto exchange agreed that the reversal of the bearish sentiment will not happen till 2024. He opined that the reversal will happen only after BTC halves again for the fourth time. The last time BTC halving took place was in 2020. But when BTC bounced back it rose very strongly. He said that the BTC market has been moving in cycles for a long time. He is confident that a bull run will happen eventually.
There are other factors that affect the length of the cycle. Factors such as wars, covid, etc. Hence it is difficult to predict exactly when the cycle will reverse. Currently, BTC prices have fallen by 33% from last year’s price and stand at $37,653.
