RESISTANCE AMONG WINTER: CRYPTO WINTER
Crypto winter refers to periods in the cryptocurrency market characterized by a prolonged decline in prices and reduced investor confidence. Bitcoin stands out as both the leader and the most affected asset during this challenging process. The crypto winter of 2022 saw Bitcoin’s price drop by over 70%, falling to as low as $16,000 (CoinGecko, 2023). During this period, macroeconomic factors, particularly rising global interest rates and inflationary pressures, increased Bitcoin's volatility (Bouri et al., 2023). However, historically, Bitcoin has shown recovery potential during crisis periods; after the winter of 2018, it reached $69,000 in 2021 (Yermack, 2015).
While the crypto winter leads to the bursting of speculative bubbles and the elimination of weak projects, Bitcoin’s decentralized structure and limited supply (21 million) provide it with resilience. Nevertheless, regulatory uncertainties and criticisms regarding energy consumption pose risks (Nakamoto, 2008). Investors should focus on long-term strategies during this period.
In conclusion, although Bitcoin struggles in the crypto winter, its historical resilience and technological infrastructure may make it a strong player in the financial system of the future.
