Crypto Winter Need To Know
Categories: Bitcoin
The phrase “crypto winter” likely came from the hit HBO series, “Game of Thrones.” In the show, the motto of the House of Stark was “Winter Is Coming.” It was considered to be a warning that lasting conflict could descend on the land of Westeros at any time.
Similarly, an extended period of trouble may be settling over the crypto market. During this difficult time, you must remain vigilant and be prepared for chaos to sweep over the market without much warning.
Defining the phrase even more literally, crypto winter is when prices contract and remain low for an extended period. Analysts believe the wheels of the emerging crypto winter were set in motion earlier in 2022.
“The crypto market was already feeling the effect of world events, especially the Russia-Ukraine conflict that caused turmoil in global finance,” says Igor Zakharov, CEO of DBX Digital Ecosystem.
Zakharov notes that high inflation has driven rising interest rates in the U.S., which is the biggest player in crypto. “By the time TerraUSD and Luna collapsed and set in motion a domino effect in the crypto world, crypto winter had already begun,” he says.