Arca Firm CEO Believes Crypto Winter Has Reached The End, How True Is That?

The crypto world was hit hard by a cryptocurrency winter in 2018, when assets’ value fell below 70%-95%. It lasted between January 2018 and December 2020.

Currently, the crypto market is experiencing another chilly winter with its devastating effects felt on the top market player – Bitcoin.

BTC still feels the crippling effects of the bearish cycle, despite its market dominance and adoption. Experts relying upon past market cycles have made a variety of predictions and speculations.

Investors and traders remain puzzled at the duration of the bearish current market trend, with the previous crypto winter taking almost three decades.

The devastating political effects on global actors have a negative impact on crypto. The Russia – Ukraine conflict has increased the pressure on cryptocurrency globally.

Igor Zakharov (CEO of DBX Digital Ecosystem) notes that the high rate of inflation in America has pushed up interest rates. U.S. is the largest promoter and dominant force in crypto.

Whales and big players shift BTC holdings

Coinbase Pro’s data shows that big institutions have made large transfers of substantial amounts of BTC. BTC volumes of 48,000 BTC are approximately $940 million.

This was done to remove bitcoin assets from holdings for a period of 3-5 years. According to Santiment, it is surprising that the medium and smaller addresses have seen an increase in their BTC holdings.

From recent data, BTC addresses with holdings in the range of 0.1 to 10 BTC now hold a record-breaking 15.9% of BTC’s total circulating supply.

BTC’s price is constantly changing. Its recent struggles to stay in the $20,000-range has been noted. Experts are puzzled by the length of crypto winter.

Arca Firm CEO Believes Crypto Winter Has Reached The End, How True Is That?
Bitcoin prices remain strong according to

Cryptocurrency: Light at the End

Rayne Steinberg CEO, Arca Digital Asset Investment firm, remains positive despite all the uncertainty. According to him, the market seems closer towards the end of the dark period. He did however point out that it was difficult to pinpoint macroeconomic variables.

Steinberg encouraged optimism, despite the fact that macroeconomic variables like inflation are taking centre stage around the world.

Due to Bitcoin’s current connection with S&P 500, BTC price has taken a beating since the general market drawdown. The bears might benefit from this bitcoin sync to the equity market.

Some experts’ predictions had the price of bitcoin nosediving by as much as 20% as its relationship with the S&P 500 continues. Other altcoins, however, are also feeling the chilling effects.

In the crypto-world, uncertainty has taken root. As the major players prepare to weather the storm, forecasts and price history are speculation.

Pixabay Featured Image, Charts from Tradingview

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