Investors are feeling the chill of a long crypto winter ahead, akin to the ‘stock market crash of 1929’: analyst

Cryptocurrencies are in freefall and there doesn’t seem to be any respite in selling on Saturday. The sudden market-wide decline portends a long and difficult winter for digital currencies after a pretty decent performance in 2021.

Bitcoin, Major Altcoins in Bear Market Territory: Bitcoin (CRYPTO:BTC) is down more than 20% year-to-date, having ended 2021 with a pretty decent gain of nearly 60%. The sale began in earnest at the beginning of November.

Bitcoin hit a new high of $68,789.63 on November 10, 2021 before moving south, and the recent downtrend has taken the crypto to $35,313.21 today. The peak-trough variation is greater than 48%.

Other major altcoins such as Ethereum (CRYPTO: ETH), Binance Coin (CRYPTO: BNB), gimbal (CRYPTO: ADA) and Solana (CRYPTO: SOL) are also deep in the red. All altcoins in the top ten cryptocurrencies by market capitalization, except stablecoins such as Attached (CRYPTO: USDT) and USD coin (CRYPTO: USDC), plunged hard.

Here are the performances of the best altcoins since the beginning of the year.

Much of the weakness is attributed to the Federal Reserve’s announcement that it is considering a Central Bank digital currency, Russia’s proposed ban on Bitcoin, and China’s animosity toward anything relates to cryptography.

Related Link: Bitcoin Slips Below Crucial $40,000 Level, Taking Ethereum, Dogecoin With It: US Treasuries, Russia, Exits & More That Weigh

A tough winter ahead? After the crypto market crash, doomsday predictions started floating around. Analysts see a fall similar to the crypto crash of 2018, when most coins fell around 90%.

Far gloomier predictions point to a situation similar to the stock market crash of 1929, which led to a crash in stock prices and was a major reason for the ensuing Great Depression. The biggest selloff in US stock market history occurred on October 24, 1929, a day known as “Black Thursday.”

Bitcoin could plunge below the $30,000 level in 2022 as the crypto bubble bursts, Markets Insider reported, citing Paul Jackson, the global head of asset allocation at Invesco. The analyst assigned a 30% chance that the currency at the top will break above the level.

UBS analysts have also warned of a crypto winter — an extended period of crypto weakness that could last more than a year, according to Markets Insider’s report. Fed tightening could cause cryptos to lose their appeal, and Bitcoin has managed to alienate some investors due to the extreme volatility that has become the order of the day, as well as its limited supply, the publication added.

When last verified, Bitcoin was down 9.03% to $35,217.76.

Related link: How to buy bitcoins

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