Crypto Winter, a Phenomenon that is Now Happening Again
The market is being hit by the crypto winter phenomenon. For the last few weeks, market conditions are not doing well. Crypto markets have been rocked by extreme volatility, with investors turning away from riskier assets amid fears of high inflation. The high rate of inflation and also the threat of rising interest rates in the United States made the prices of crypto assets fall.
Crypto analysis calls this condition a crypto winter, which is a period where prices decline for a prolonged period of time. This crypto winter also has an impact on decreasing enthusiasm for the industry.
The crypto market is experiencing bearish, bitcoin as the largest market capitalization in cryptocurrencies also experienced a drastic decline during the week with a total weakness of 4.9%. This is what makes the market see this phenomenon as a crypto winter.
However, the CEO of Binance, namely Changpeng Zhao or better known as CZ sees this situation as good for business in the future. In a recent interview, questions were raised for CZ about how Binance will perform during the crypto winter following reports of hiring freezes at Gemini and Coinbase, but CZ answered confidently.
“This is not the first time we have gone through a crypto winter. If we are in crypto winter, it will be the third and second for Binance. So this isn’t the first time we’ve had this happen,” CZ said as quoted by Cointelegraph.
While the crypto market has been suffering from a period of decline in recent weeks, CZ recommends that now is the right time for companies to expand their business reach.
After reading the explanation about the crypto winter and recent market conditions, what is your response to the current crypto market conditions? Do you think this is the end of the crypto market? Or is it a period for the market to rise even higher?
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