Bad News for Bitcoin Fans: Crypto Winter May Have Only Just Begun

The cryptocurrency market again fell below $1 trillion, valued at $997 billion at last check. 

Bitcoin, the king of crypto coins, is below the symbolic threshold of $20,000 for the first time since July 14. 

The fear that dominated the markets in May, June and early July is back. Investors figure that the economy could slide into recession as the Federal Reserve aggressively hikes interest rates to fight inflation, which is at its highest in 40 years.

These fears have only intensified the volatility in the cryptocurrency market. From the beginning, the cryptocurrency market has seen bull runs, even euphoria, often followed by equally strong downward movements. And when the dips last for a good period, we speak of crypto winter setting in. 

There have been several episodes since the advent of bitcoin in 2009. But initially we were talking mainly about crypto bubbles bursting than about crypto winter. Let’s look at the two longest most important crypto winter periods.

January 2014 to February 2017

On Jan. 6, 2014, bitcoin was trading around $1,000. The next day prices fell and did not recover until Feb. 2, 2017. This crypto winter, lasting nearly 37 months, was caused by the Mt. Gox scandal, which tarnished the crypto industry’s image for a long time.