There is no doubt that crypto tokens are a lucrative investment model. The token gained popularity in late 2009. The concept of blockchain technology such as Bitcoin Boom backed with decentralized finance attracted investors.
Market growth of crypto tokens
With an evolving market, crypto tokens created a large marketplace for it. More than 14k crypto tokens are being traded every day. Other than crypto tokens, there are stable coins, non-fungible tokens, etc. for investments.
The total market volume of crypto tokens stands at $3 trillion. Out of which more than 50% of the market trading is undertaken on Bitcoin.
Despite many attractive factors, cryptos do suffer from a drawback. The market is fluctuating and gives way to price volatility. One reason for this is its 24*7 trading options. The market is always open. Hence, the price you invest today is different from what you see tomorrow. The market changes while an investor sleeps.
Popular trends in crypto tokens
With the growing interest in cryptos, many popular trends also made way. From the fear of missing out on the crypto winter season, there is a name for all.
Understanding crypto winter
Yes, this is a popular term in the cryptocurrency market. Crypto winter simply means the market continues to stay low for an extended period. This is particularly true in the current market condition.
A popular coin like Bitcoin has fallen to more than 55% low. The token is being traded at $21k per token. It is at an all-time low since the launch of this token in the investment market. The market capitalization of the token has reduced to $1 trillion. It means more than $2 trillion has been completely wiped out from the global market.
Before 2022, the crypto winter season was felt in the 2017 and 2018 periods. During this period, it took more than 18 months for the market to recover. It is particularly the reason for the crypto boom in the 2020 period. In the current situation, market experts are still forecasting another plunge in prices. The current situation is going through another bear market situation as well.
Before jumping to conclusions let us look at four simple ways to predict crypto winter.
Major crypto tokens are falling in their prices
Yes, this is the primary step to ascertaining the crypto winter market. Most crypto tokens, especially the popular ones, will showcase a downward trend. In the current situation, popular tokens including Bitcoin, Ethereum, and Shiba are on the red line. Terra and Litecoin have washed out from the market game altogether. Investors continue to worry about their funding. Pessimist investors are on the lookout to trade their funding on losses.
Hiring freeze and layoff
Yes, this is another popular culture. It is seen in crypto exchanges and other allied services of cryptos. Many popular exchanges will declare a complete freeze on their hiring until recovery. Also, there will be layoffs by major institutions. There are no new investments in cryptos creating a cascading effect on exchanges.
Every market is down
Yes, this may not be necessarily felt. But on closer observation, you may see that there is an interconnection between all. The economy is on a global downfall. Many assets including gold, stock trading, and real estate are experiencing price slashes. It is unrealistic to expect cryptos to be up while every other economic condition is down. The economy is unstable and continues in this trend for another few months. In the current situation, the market is expected to recover in another year or so.
Open to speculation and worrying investments
Yes, the market condition will be open to continued levels of speculation. The optimistic investors think that this is the right time to invest. While there is another group of investors who feel that crypto tokens may deteriorate.
How long will this market condition last?
Now there is a simple answer to this question. The market condition will continue to last until the recession continues. Crypto tokens also need to worry about policymakers and the governance of these tokens. Steps taken to over-regulate these tokens may constrain the growth of crypto tokens. The best thing in the current market situation is to understand this investment.
