Delta Blockchain Fund founder Kavita Gupta told Bloomberg Technology that the current conditions in the crypto highlight a winter season, which might dominate for more than one year. Citing similar actions in the past, she said that the crypto is in the early winter stages. She remained surprised as individuals believe BTC will hover near $30K. Gupta trusts further decline to a stable region to $22K, $18K, or $14K.
Are we really in crypto winter?
The Downside Market
The global market value of all cryptocurrencies witnessed an enormous decimation since 2022 started, recently breaching $1.6 trillion. Welcoming the year at $2.2 trillion, the metric dropped by 45% within 141 days. Maintaining its actions within a descending channel since May started, the cumulative crypto market cap hovered around $1.26 trillion (at this publication).
How Leaders Fell
The world’s leading crypto by market cap, Bitcoin, suffered price fluctuations within the past ten days. Moreover, the crypto noted 24hr closing between the price range of $28K and $31K within the ten days. Bears have halted all upside endeavors as Bitcoin hovered within this territory regardless of multiple attempts to move higher.
While writing this content, Bitcoin stood at $29,515.39. The digital token witnessed challenging setbacks in May as the price fell further. With the massive correlation with stocks, the latest pessimistic actions by the S & P 500 dragged BTC down. That had market players further losing confidence in the currency.
Similarly, the May 12 incident saw TerraUSD collapsing, which had the LFG trimming its BTC Reserves to save the sinking UST contributed to Bitcoins downfall. 57% down from the $68,789.64 all-time high, Bitcoin’s recovery path remained challenging with a potential recession in the US as the stock market maintained plunging numbers.
Alts are Also Down
The massive correlation with BTC saw the altcoin’s cumulative value on a significant slump. 45% down since the start of 2022, the overall market cap for all alts hovered around $698 billion at this publication. Alternative tokens have mimicked BTC’s fluctuating tendencies.
Regulatory Activity Amid De-pegging
With TerraUSD leading the de-peg plague, the market has seen three other stablecoins surrendering the $1 tie. That attracted the attention of global regulators who plan to monitor the cryptocurrency space. With increased regulation possibilities this year, most crypto assets might experience further downtrends.