Crypto Winter

What is Crypto Winter?

A prolonged decline in cryptocurrency prices is known as a "winter" in the industry. Numerous things, including a change in regulations, a lack of demand, greater difficulty, and the accumulation of unsustainable highs, might start a crypto winter. But the top three events that trigger a crypto winter are exchange hacks or failures, market crashes, and excessive government regulation.

January 2018 marked the start of the previous crypto winter, which lasted until December 2020. We can observe from the past that a crypto winter behaves like a conventional bear market. Over time, weak startups are eliminated, allowing stronger businesses to expand and demonstrate the superiority of their offerings.

A significant sell-off from the previous all-time high of Bitcoin typically marks the beginning of crypto winter. BTC's most recent ATH occurred in November 2021 when the price reached $68,000. Following then, prices started to decline. The cost dropped by roughly 70% by mid-June 2022.