Since the failure of stable coins at the beginning of May, everyone has been watching Bitcoin (BTC). Before this week’s big correction, it was hard for the price of BTC to stay near $28,000, which is a psychological barrier. This is the most important sign of the market for cryptocurrencies. If you want to monitor your crypto assets status, click here.
What’s up with this “Crypto Winter”?
Most likely, “crypto winter” was first used on “Game of Thrones,” a popular HBO show. “Winter Is Coming” was the House of Stark’s catchphrase for the whole series. It was seen as a sign that a long-lasting battle could happen at any time on the continent of Westeros, and this warning should be taken seriously.
In the same way, it’s possible that the cryptocurrency market is about to go through a long time of trouble. During this hard time, you need to stay on your toes and be ready for chaos to break out on the market without much warning. He said that the current state of the market is not good. But he thinks that this bear market is like others that have happened before and that the business will get through its problems in the long run.
The cryptocurrency industry will benefit from money coming in.
In the past few weeks, the value of digital assets on the market has dropped a lot. Several things in the big picture of the economy led to this. For one thing, the price of bitcoin fell below $18,000 over the weekend, which hasn’t happened in the last 18 months.
Brett Harrison, the President of FTX US, doesn’t seem too worried about the trend going down. This argument was based on the fact that bear markets have happened in the past.
The American went on to say that the current “crypto winter” is a lot like the ones that have happened in the past, especially the ones that happened in 2018.
After that, Harrison explained what bitcoin is and how it works, as well as the fact that no government or central bank has control over it. He said that it had become a way to store a value that could be moved “safely and instantly” to any place on Earth.
Harrison said a month ago that his platform for trading cryptocurrencies would ask the Commodity Futures Trading Commission (CFTC) for permission to offer Bitcoin and Ethereum futures options to customers in the United States. The executive thinks that the project could help the company make more money in the following ways:
One thing that makes our plan stand out is that we plan to do this in real-time, every 30 seconds, and at all times of the day and night.
Harrison said that the Commodity Futures Trading Commission (CFTC) is a watchdog that is “based on principles” and knows about digital assets. He said that the talks the two sides have had so far have been productive, which has given people more hope that the plan will work.
Before that, FTX US had started offering a brand-new stock trading service to a small group of customers in the United States. The company plans to offer this chance to all of its American clients at a later date.
Why it’s a good idea to use Crypto Winter
This isn’t the first time a crypto winter has hit the market. Jake Weiner, the founder and CEO of Uncommon, says, “There have been a lot of new companies in the industry in the last year, and many of them will fail.”
He thinks that if the market stays the same for a long time, not only will bad companies lose money, but some good companies will also lose money. The good news for these companies is that, unlike in previous crypto winters, many crypto VCs have already built up war chests that they will continue to use.
The cryptocurrency market thawed out at the end of 2020, which was followed by a period of fast growth that lasted most of 2021.