With Bitcoin above USD $30,000 does it make sense to talk about crypto winter as it happened in 2018?

Does the state of this market an area or arena, online or offline, in which commercial dealings are conducted. look like Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. to what happened in 2018? Below we take a brief look at the evolution of the leading digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. in recent years and examine some differences about the current situation with respect to the crypto winter seen in previous years.

• BTC sobre los USD $31.000 este 6 de junio.
• The previous crypto winter lasted from 2018 – 2020.
• In 2018 BTC fell to lows near USD $3,000 but picked up in the late 2020s
• There is now more institutional interest and greater regulatory clarity.
• USD $30,000 is the key support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. for BTC.

A concept that we have seen very often in recent months has been the concept of the “crypto winter” which refers to that period in which the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market maintains a bearish outlook that lasts for a long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. time.

The most optimistic readings tend to point to a duration that will last for a few months, while the less friendly ones indicate that we could remain under these conditions for more than a year.

The fact that perhaps many lose sight of is that, by pointing to this period as a crypto winter, the current period is far from resembling what we saw during 2018 which is probably the closest benchmark benchmarking is a method of comparing the performance of your asset or investment portfolio to that of similar assets to see whether there is a gap that can be bridged by increasing performance indicators. many have on previous drops in the digital currency market.

Below we present a comparative analysis from the perspective of Bitcoin ( BTC ), the main digital currency whose global capitalization corresponds to 46.9% of the capital capital is most commonly defined as the large sum of money you would use to invest. flow currently moving in the sector.

Bitcoin over USD $31,000 this June 6

By noon this June 6 the price of Bitcoin is trading at around USD $31.302 per unit, which translates into a slight increase of 4.33% in the last 24 hours.

According to data published in our section CryptoMarkets and in CoinMarketCap , can be seen as the price of Bitcoin has been evolving favorably since the night of June 5th, since from 9:00 pm (New York time) we see that its price began to rise from USD $29,900 to be above USD $31,000 before midnight. However, the most remarkable moment took place shortly after 10:00 am on June 6th, when it reached a high near USD $31,690 and then fell and settled around the aforementioned values.

According to analysts and enthusiasts, the sudden rise seen in the overnight hours would correspond with the movement of the Asian and European markets.

At the time of editing Bitcoin registered a daily trading volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. in excess of USD $30.66 billion , el cual corresponde con un aumento del 88% en comparación con los valores vistos en la jornada previa, reflejando un notable interés de compra en los momentos de mayor movimiento comercial.

2018 vs 2022: Different winters?

Taking as a reference the case of Bitcoin, from here you can see in more detail if there are any palpable differences between the crypto winter that took place in 2018 and the bearish period we’ve been seeing these past few months.

Let’s keep in mind that the price of Bitcoin by December 2017 reached highs hovering around USD $19,500 per unit, from which point it fell to lows near USD $3,200 by the end of the following year. By mid-2019 its price passed the USD $10,000 barrier, keeping it fluctuating around USD $8,500.

For some analysts, this period that took place from the beginning of 2018 until October 2020 consisted of a large accumulation phase for investors and enthusiasts of Bitcoin, as it was a time when many people thinking long term quietly took advantage of the opportunity to periodically add more and more BTC to your reserves.

Subsequently, the price of the main digital currency began to skyrocket, coinciding with the enormous institutional interest in investing and starting to save Bitcoin as a value asset. From here we saw important peaks and record highs, such as USD $63,500 in mid-April 2021 and USD $67,566 seen in early November of the same year, this being the point from which its price has fallen to around USD $30,000 per unit over the past few months.

The most remarkable ads

As expected, during this period there were important announcements that played both in favour and against the price of Bitcoin, among which they stood out positively:

• Bitcoin received new halving an event in which the total rewards per confirmed block halves. and rewards are cut to 6,25 BTC per block.
• Square (now Block), Tesla y MicroStrategy invierten en Bitcoin and begin to save reserves.
• Approved ETF’s Bitcoin in Canada and Brazil.
• U.S. approves first ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. futures a futures contract is a standardized legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. of Bitcoin.
• U.S. banks begin to operate as custodians for Bitcoin and other cryptos.
• FED announces more dollar printing to generate more liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. and fund bailout programs.
• El Salvador and Central African Republic formalize the adoption of the Bitcoin as legal tender.

But there were also other events that played against and brought a lot of panic in the market:

• Million-dollar hack of Japanese exchangeCoincheck.
• Proliferation of ransomware-type attacks and ransomware ransomware is a type of malware used by hackers to steal or encrypt their victims’ files to extort them for a ransom in exchange for file decryption or restoration. with Bitcoin.
• Pandemic announcement by COVID-19.
• China bans cryptocurrency mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. and trading in its country.
• Increased international regulatory emphasis on the crypto sector.
• FED increases bank interest rates to deal with inflation.

Different times and situations

At this point it becomes clear that times have changed and the market also behaves differently than what we have seen in the past, which is why USD $30,000 now appears as the key support for the price of Bitcoin in the middle of this crypto winter.

Aunque el precio ha caído más de un 50% con respecto a los máximos históricos vistos en noviembre de 2021, para muchos analistas el mercado cripto goza de una mayor madures y cuenta con más participación de inversionistas institucionales, lo cual aporta mucha más liquidez que la vista en años previos, al tiempo que crece el interés por invertir en la moneda digital entre participantes de los mercados tradicionales.

It is also worth noting that we are in a totally different regulatory moment, where we are in a totally different regulatory moment, where Bitcoin now enjoys greater legal clarity and therefore there are clearer principles for a legislative approach. Currently there are countries where digital currency is already an official currency, and others where there are important advances to legitimize the use and trade of digital currency. BTC and other cryptoassets.

So yes! from the perspective of Bitcoin we can talk about a crypto winter, but this one will be very different from the one experienced between 2018 -2020 in terms of prices and outlook for the market.

The market is no longer just Bitcoin

While since Bitcoin differences can be felt between this and the previous crypto winter, it is important to recognize that the digital currency market has evolved significantly and that currently the ecosystem also enjoys many other reputable exponents that are moving in different directions, with very solid technological proposals to further expand the usability of Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. and its benefits to more traditional sectors.

The need now is different

The main stake at the moment is that the networks Blockchain become support for many, many more use cases, which is why projects such as Ethereum, Cardano, Solana, Avalanche and many others are working on providing greater scalability, speed and versatility to their respective networks.

But perhaps the most important thing now is the recognition of the diversity of proposals within the sector. Blockchain, Therefore, the projects aim to generate greater interconnectivity between existing networks so that ecosystems can communicate and exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. information, thus breaking in the world of cryptocurrencies, breaking the forward compatibility of cryptoassets is seen in hard forks of a cryptocurrency. down the barriers that exist between one project and another.

Therefore, the achievements and progress made by these projects in the coming years will also be of great importance for the future of the sector, as they could lead to Blockchain will be consolidated as one of the new technologies that will become part of the international standards in many sectors.

The most important news of the day

We understand that this is a complex and especially sensitive time in the cryptocurrency market, but if you are one of the people who see opportunities with the current prices, we remind you that our section CryptoMarkets buttons are now available for you to buy your favorite digital currencies.

If you wish to purchase Bitcoin ( BTC ), prefer to buy Ethereum a decentralized open-source blockchain with smart contracts functionality. ( ETH ) or want to get someTether ( USDT ), all you have to do is access our website CryptoMarkets and click on the currency of interest. In addition to seeing its price, evolution and other market data, you will also find a buy button that will take you to a exchange reputable in which to do business.

We recommend everyone to be very attentive as this possibility will be added soon for a greater number of digital currencies.

With information from CryptoMarkets DailyBitcoin y CoinMarketCap

Analysis sponsored by EurocoinPay

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