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Investors fear ‘crypto winter’ is coming as bitcoin falls 50% from record highs


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As cryptocurrency investors reel from the sharp sell-off in bitcoin and other digital currencies, some fear the worst is yet to come.

Bitcoin, the world’s largest virtual currency, briefly plunged below $33,000 Monday to its lowest level since July. It’s since recovered back above the $36,000 mark, but is still down almost 50% from a record high of nearly $69,000 in November.

Meanwhile, the entire crypto market has shed more than $1 trillion in value since bitcoin’s all-time high, as top tokens such as ether and solana followed the No. 1 digital currency to trade sharply lower. Ether has more than halved in value since reaching its peak in November, while solana has suffered an even steeper decline, falling 65%.

That’s got some crypto investors talking about the possibility of a “crypto winter,” a phrase referring to historic bear markets in the young digital currency market’s history. The most recent such occurrence happened in late 2017 and early 2018, when bitcoin crashed as much as 80% from all-time highs. Full article on CNBC

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Hi, 

This title WILL NOT CREATE a "crypto winter" as BTC has already bounced 10% from it's low - as you report AND is 20% higher than EOY 2020. Thats not a winter in my books - I know I am nothing, but my facts are true - all we have today is market VOLATILITY - and that is up 50% in a month - CRYPTO HODLers are firm.  Well that's my forecast - anyway I look forward to a hot June !!!  I can buy more at this bargain price - ATB DSB. Ps. However great Headline. Also my budget is ZERO LOL.

 

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15 hours ago, David30b said:

BTC has already bounced 10% from it's low

Hi @David30b

Thanks for sharing. From the key points yes it has recovered and its investors talking about a possibility.

Bitcoin, Ethereum Technical Analysis: BTC Bounces Back After Monday’s Selloff

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Following Monday’s selloff, cryptocurrency markets mostly rebounded across the board, with bitcoin and ethereum prices rallying by as much as 10%. Overall the global crypto market cap was over 6% higher from yesterday’s session.


Bitcoin, which fell to an intraday low of $33,184.06 during yesterday’s session, was up close to 9% as of writing, hitting a high of $37,247.52 in the process.

After a false breakout from its support level of $34,170 to start the week, today’s move saw BTC/USD climb from this point, with some anticipating the potential for a rally towards resistance of $40,000.

Looking at the chart below, BTC bulls appear to have re-entered as many expected at this level, similar to July’s move, however with the RSI still oversold, many remain skeptical of a full scale bull run.

btcusd_2022-01-25_16-46-33_54f49-1024x60
BTC/USD – Daily Chart

Now that the short-term 10-day EMA (red) has somewhat eased its downward momentum, traders will be anticipating a potential reversal, as the chances of the upward cross gradually increase. One thing to consider is whether we are seeing long-term bitcoiners buying the dip.

 

MARKET UPDATES by Eliman Dambell, 25th Jan 2022. Bitcoin.com

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