businesses of the cryptocurrency industry are now forced to freeze hiring, or even to lay off many of their employees. It is natural, the market been constantly trapped for several months during this period of ” crypto winter “While their reputation has been tarnished, will they come out stronger at the end of this difficult period?
The concept of crypto winter
Cryptocurrency prices sometimes experience notable declines. This is a universal fact in the digital asset market that spares no company, not even the most powerful. This is the case with Coinbase, Gemini or even Bitso. Bitcoin, the largest cryptocurrency, even experienced an alarming decline after peaking during the Covid-19 pandemic. It is this period of cooling that extends over several months and that ” crypto winter or crypto winter in French.
It was in 2018 that the term ” crypto winter makes sense. At that time, the market went through a very worrying decline for several months. Bitcoin (BTC) actually fell by 80% and most digital currencies collapsed.
Many investors preferred to migrate to more secure assets as the bear crisis exposed the volatile nature of cryptocurrencies. Indeed, in difficult times, many people come to a conclusion by stating that this is the end of the cryptocurrency market.
Digital assets are far from bottoming out, though, and it was clearly just bad luck. In 2019, the market was indeed able to recover slowly but surely. Moreover, he got the support of some powerful banking institutions. Large investment funds also contributed to the growth.
The crypto winter has arrived, but it looks less harsh
There is no denying that crypto winter exists. Moreover, the figures and the facts bear witness to this, first of all the layoffs that take place within the large companies in the sector. This is the case with Gemini, which has a layoff rate of 10%. This is also the case with Coinbase, which is introducing a hiring freeze. The layoffs of staff extend to Argentina, where the rate at Buenbit reaches 45%.
Despite all the difficulties and concerns related to 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 if the crypto winter is here, it should be noticeably less violent than it was in the past. latest editions.
There is really no need to worry because despite its volatility, cryptocurrency is becoming more mature thanks to the intervention of various technological players. In addition, the presence of billions of dollars in venture capital funds is a major contributor to the survival of the ecosystem in times of crisis. Also, the cryptocurrency market is not alone in experiencing instability right now. Other technology stocks like Peloton (PTON) or Zoom (ZM) are also not unscathed.
The crypto winter is a tough time for all cryptocurrency investors. But it doesn’t mark not the end of the market and seasoned investors are aware of it. In reality, such a period provides an opportunity for any ecosystem to gain support and build better to come out of it stronger than before.
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Interested in investments and financial markets after a business school in Chambéry, the passion for cryptocurrencies was apparent. The blockchain is without a doubt the universal tool of tomorrow.