Few people escaped the fact that the prices of almost all cryptocurrencies collapsed. Bitcoin (BTC) is desperately trying to stay at $30,000 at the moment. Virtually all altcoins also lost their value. Delta Blockchain Fund founder Kavita Gupta says we are dealing with a real "cryptocurrency winter". As he says, this period may last for at least another year.
In an interview with Bloomberg, Gupt clearly states that the cryptocurrency market has entered the cryptocurrency winter period after a significant correction. Moreover, the current price action is quite similar to previous such periods. Therefore, it concludes that it is likely that this period of price decline could continue for at least one to a year and a half.
Gupta even expects the price of bitcoin to drop down to $14,000 before it stabilizes. The same fate awaits the price of the second largest cryptocurrency - Ethereum (ETH).
“I think this is just the beginning of the cryptocurrency winter. […] We will be here for at least a year and a half. I don't believe Bitcoin will come back to $45,000, $50,000, or $60,000 in a year and a half. […] I am very surprised that people expect Bitcoin to remain around $30,000. I expect it to drop to around $14,000.
New all-time record?
If Gupta is to be believed, the near future is not very promising. Even so, she is convinced that Bitcoin will set a new all-time record when winter is over in the cryptocurrency market. In addition, the current market correction provides an opportunity for wider adoption of cryptocurrencies such as bitcoin and Ethereum. Gupta suggested that the more companies include bitcoin in their balance sheets, the greater the chance of a new peak will be.
Gupta also briefly discussed the recent collapse of the Terra ecosystem (LUNA). According to her, the collapse of the TerraUSD stablecoin (UST) will change the future of the stablecoin sector. The projects will be forced to protect the stablecoin's link to fiat, and not to other cryptocurrencies, as was the case with TerraUSD.
What do Hoskinson and Buterin think?
The founder of Cardano, Charles Hoskinson also says the market is in the deep phase of a new cryptocurrency winter. According to him, it takes weeks or even months to reach the bottom, followed by a moment of respite. He added that digital asset markets are in a phase of "panic strokes on the streets." In the recent Cardano founder's tweet, we could read:
"If this is your first cryptocurrency winter, then hello. I've been through a lot of them since 2011, and they always hit like a cold bath in ice. We are in a blood panic phase in the streets. After a few weeks or months, once the bottom is found, everything will calm down. Then we have a long climb up the ladder."
If this is your first cryptowinter, then welcome. Been through many since 2011 and they always hit like a cold ice bath. We are in the panicked blood in the street phase. It clears in weeks to months as a bottom is found. Then a long climb up the ladder https://t.co/R1QMF0NgRI— Charles Hoskinson (@IOHK_Charles) May 12, 2022
In turn, the co-founder of Ethereum, Vitalik Buterin, announced the next winter in February. However, he argued at the time that this was a good thing for the entire market. During an interview with Bloomberg, the founder of Ethereum said:
People who are deeply committed to cryptocurrencies and especially building things many welcome the bear market. They enjoy the bear market. When there are those long periods where prices go up by enormous amounts, as is the case - this obviously makes a lot of people happy. However, it also tends to invite a lot of very short-term speculators.
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