BIG CYCLES
CRYPTO RENAISSANCE | NOVEMBER 2024 - NOW
CRYPTO WINTER |
The term "crypto winter" refers to extended periods when the cryptocurrency market experiences significant declines in asset prices, trading volumes, and overall investor sentiment. Here are the main instances when crypto winters have been recognized:First Crypto Winter (2014-2015):
Start: Generally considered to have begun in late 2013, after Bitcoin reached an all-time high of around $1,200 in November 2013.
End: Extended into 2015, with Bitcoin dropping to around $180 by January 2015. This period followed the collapse of the Mt. Gox exchange, which lost 850,000 Bitcoins due to hacks and mismanagement.
Second Crypto Winter (2018-2019):
Start: This crypto winter is often cited as beginning in early 2018, after Bitcoin peaked at nearly $20,000 in December 2017.
End: It continued until late 2019 or early 2020, with Bitcoin bottoming out around $3,200 in December 2018. This period was marked by the fallout from the initial coin offering (ICO) bubble, regulatory crackdowns, and a general loss of investor enthusiasm.
Third Crypto Winter (2022-2023):
Start: Widely acknowledged to have started around May 2022, with significant events like the collapse of Terra/Luna and the subsequent fallout affecting many other cryptocurrencies.
End: While it's debated when this winter officially ended, by late 2023, there were signs of recovery, particularly with Bitcoin showing significant gains. However, some argue the crypto winter extended into early 2024 due to ongoing macroeconomic issues and regulatory pressures.
Key Characteristics:
Prolonged Price Drops: Significant and sustained decreases in prices of major cryptocurrencies, often with Bitcoin leading the decline.
Reduced Trading Volume: A notable drop in trading activity, indicating lower market liquidity and investor interest.
Bearish Sentiment: A shift in market sentiment from bullish to bearish, with many investors pulling out or holding off new investments.
Industry Challenges: Layoffs in crypto companies, project failures, and increased scrutiny from regulators.
Sources:
Various discussions on X mention the 2018-19 crypto winter, highlighting Bitcoin's drop to around $3,200 and the quiet building by developers during this time.
The 2022 crypto winter is noted for starting with the Terra LUNA collapse, followed by other major crypto firm failures, leading to a significant market downturn.
Web sources detail these periods, with specific events and market behaviors defining each crypto winter.
While these are the most recognized crypto winters, the exact start and end dates can be somewhat subjective, as they depend on market recovery signals and the perception of investors and analysts.