crypto marketsAs volatility continues, this past weekend witnessed a major correction. The escalation of tensions between Russia and Ukraine, the news that the US Federal Reserve will increase interest rates, continues to create volatility in the stock and crypto markets.
Ethereum co-founder Vitalic Buterinebelieves that another “crypto winter” may be certain and thinks it could be a good thing for the markets. Since November 2021, the cryptocurrency markets have entered a phase of strong correction that has resulted in investors losing hundreds of billions of dollars.
The Bloomberg Galaxy Crypto Index is down 45 percent from its all-time high. Similarly, Bitcoin and Ethereum have each corrected 40 percent from their highest prices.
A similar situation happened in 2018, which led to a prolonged correction called the ‘crypto winter’.
“Crypto winters are when many of these practices disappear, and you can see which projects are actually sustainable long-term, as with both their models and their teams and people.”
Crypto Winter Could Be Good For The Market
Buterin believes that the crypto world can truly benefit from the recent correction in cryptocurrency prices. Speaking in an interview with Bloomberg, Buterin noted:
“Many of the people who are deeply interested in crypto and specifically building something welcome the bear market. They welcome the bear market because when there are these long periods when prices increase by huge amounts like it does, which obviously does. A lot of people are happy with this, but it also tends to invite very short-term speculative interest.”
However, Buterin said he was “surprised” at the way the market has moved over the past year. He also stated that he is not sure if the market is showing some volatility or if the crypto is truly entering another winter. At an event he attended earlier this month, Buterin noted:
“Crypto markets seem to have flipped the transition from being this niche group controlled by a very niche group of participants, and are evolving into something quite disconnected from traditional markets, acting more and more like part of mainstream financial markets.”
Bitcoin Also Prepared For The Crypto Winter By 2024
In other news, Du Jun, co-founder of cryptocurrency exchange Huobi, claimed that Bitcoin is ready for another crypto winter altogether. Jun next Bitcoin (BTC) stated that the bull run could now come in late 2024 or early 2025.
Related News: Huobi Co-Founder: No Bull Runs In Bitcoin To This Date!
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.