Bitcoin Showing Signs of Resurgence After Catastrophic Dip: What's Contributed?
The Crypto Winter looms even as Bitcoin’s price shows signs of stabilising and resurging. Read on to discover more.
Bitcoin is routinely in the spotlight, due to its position as the inaugural and most prominent cryptocurrency. It’s the most expensive, most owned, and most used for payments. Under this spotlight, it acts as a representative of the crypto scene as a whole, indicating where its heading and where it is.
In November 2021, Bitcoin hit a record-setting $68K as the wider crypto market amassed a $3T total market cap. Ether, Doge, and other altcoins rode this wave of investor interest and confidence, while NFTs showcased the potential for blockchain applications in new areas of ownership and expression. The mood was bullish. Since the turn of the year, though, the de-pegging of notable stablecoins, collapses of projects like Terra, and the wider struggle of the larger macro-economic backdrop has caused crypto’s price to decline steeply, wiping out all the grounds gained in 2021, ushering in the Crypto Winter in June 2022. This bear market, though, by all indications and in terms of percentages, is not as severe as those which have come previously – in 2011, 2015, 2018, and 2020.
Does This Market Have a Different Mood?
There’s a different set of conditions and mood within this bear market in comparison to others. Ground gained in 2021 attracted the attention of notable companies like Tesla and proved to notable figures like Tesla’s Elon Musk and billionaire Mark Cuban how viable crypto can be for payments and storing value, and, also, how viable blockchain is for various potential applications. (Cuban is an outspoken advocate for crypto and blockchain, being vocal about his investments in various coins and projects, sitting on the NBA’s blockchain advisory board, and implementing blockchain-based solutions as willingly and sensibly as possible within his NBA franchise, the Dallas Mavericks.) Not only this, investors witnessed the scale of bitcoin’s potential as its price hit $68k. As a result, whales, tech-solutionist entrepreneurs, traders, and amateur investors grew the community of crypto users who were increasingly stubborn and optimistic about crypto’s future. While, yes, many of those conducting transactions hourly and daily are in it for short-term gain, 2021 saw many become believers in crypto’s long-term use.
Bitcoin Supported By Big Money and Big Companies
This view of crypto was evident during this latest bear market – the Crypto Winter – in more than just talk, though.
- Large-Value Transactions Have Remained Stable Throughout: while transaction volume and market cap reduced during the crypto winter, large-value transactions remained consistent. This trend has tangential similarities to that of another data point: that the percentage of bitcoin being used to purchase luxury goods – cars, yachts, clothes, and jewellery – continues to rise. A rough conclusion would be that those who have the funds, regardless of Bitcoin’s price, see value in trading and investing through the winter.
- Retail and Institutional Interest Persists: this is a two-part point, but both indicate a strong belief in crypto from business and corporate players: 1) world-leading investment companies are granting their clients opportunities to add digital assets to their portfolio because clients want to, and 2) retailers are remaining open to accepting crypto as a payment method for their goods.
- Whales Increasing Their Holds and The Number of Whales Increasing: crypto whales are increasing their investments in coins they hold whale status but, also, other coins too. In addition, as the price of coins are lower than usual, more users are becoming whales. There are approximately 152,936 Bitcoin whales as of December 4, 2022.
The End of the Crypto Winter
This Crypto Winter saw notable losses to the crypto market. High-profile projects like Terra collapsed, as have Celsius, a crypto lender, and Three Arrows Capital, a crypto hedge fund, while exchanges and other crypto-based start-ups and companies lost value and liquidity – some filing for bankruptcy – and reduced their workforce.
This winter has by no means been just about crypto losing value in isolation. However, as stated above, the mood was bullish, even if the market wasn’t. Those bullish saw this latest plunge as a ‘weeding out’ of weak hands, those who baked too much risk into their operations, which is better for crypto’s future.
Economic forecasts looked rosier as interest rates and inflation adjustments were favourable to risky assets, bolstering the appetite to begin investing in crypto again, contributing to bitcoin stabilising towards the end of 2022. Crypto assets are also following the stock market, tracking closely, which many see as a good sign. Additionally, even when negative events occurred and the news was released, the market didn’t react negatively, further reinforcing that the crypto market had found its local bottom.
Heading into 2023, the wider market continues to maintain value. Ether’s price, in particular, has held steadily since the merge was completed. Despite talk of recessions in major economies, the expectation is that, while it's impossible for crypto prices to hit previous heights in the near future, north of $30k is possible in the new year, especially if institutional interest becomes action.
Regulatory tightening and EU MICA - risk or opportunity
In this article, we’ll discuss the upcoming Markets in Crypto Assets (MiCA) bill proposed by the EU Parliament. ...
The 5 Main Types of Crypto Attacks
In this article, we’ll examine the five main types of attacks that target cryptocurrency users.
Crypto Trends in October 2022
It’s October! What's trending in crypto this month?
Crypto Trends in September 2022
It’s September! What's trending in crypto this month?
Tesla Sells Bitcoin Holdings: Will This See the Beginning of a Trend for Other Businesses Who Hold Crypto?
Tesla has sold off 75% of its Bitcoin holdings. Click here to find out why and whether other businesses will be ...
Bitcoin Maximalism: What Is It?
Bitcoin maximalists are receiving more attention in the mainstream media. But what are they? Read on for ...
All About Crypto Seasonality
The total market capitalization of the top 100 cryptocurrencies has increased over the past seven years from ...
Getting to Grips with Arbitrage
The world of trading has many different tricks and tools refined over the years by strategists and financiers, ...
The Crypto Winter: Are There Any Advantages?
It seems that another crypto winter is among us, but what does it mean and are there any advantages? Click here ...
The Comparisons Between the 2018 Crypto Bear Market and Now: Are They Useful?
Cryptocurrency is currently heading into another bear market. Click here to find out how noting comparisons can ...
The Blossoming Intersection of Fashion and Crypto: What Does the Future Hold?
Over the last few years, fashion and crypto have been entwined together. Click here to find out what this means ...
Could Post-Merge Ethereum Have a Centralization Problem?
Ethereum recently completed its merge into Ethereum 2.0. Click here to find out if this will bring about a ...
Instagram to Add Support for NFTs
Instagram to launch NFT functionality on its platform in 100 countries worldwide
Can Ethereum’s Ecosystem Keep Its Future Bright Amidst This Crypto Winter?
Ethereum has steadily been building an ecosystem unlike any other. Click here to find out why its future remains ...
Buterin Criticises Bitcoin’s Stock-to-Flow Price Prediction Model – But What Is It?
The stock-to-flow prediction model has caused a mixed reaction amongst the crypto community. Click here to find ...
AVAX, the Ethereum Killer: What You Need to Know
AVAX, which is a token run on the Avalanche blockchain, is said to be the Ethereum killer. Click here to find out ...
A ‘Digital Library of Italian Culture’ in Puglia: Is It Expanding NFT Use to New Areas?
The University Aldo Moro is currently using NFTs as a way to reignite the culture of Puglia. Click here to find ...
Crypto’s Position in the Italian Economy: Will It Only Grow and What Would Regulation Do?
Crypto is continuing to grow in the Italian economy. Click here to find out how and what regulation might mean ...
Will the EU Adopt a Digital Currency?
Cryptocurrency is growing across the world, with more and more countries starting to embrace it. Click here to ...
We are delisting Swipe (SXP)
Due to a change in the blockchain used by Swipe, SXP will no longer be supported.
Scheduled Maintenance on 05/06/2023
We will conduct scheduled maintenance from 06:30 to 07:00 (UTC+2) on 05/06/2023.
We are listing Ocean Protocol (OCEAN)
We will soon be listing OCEAN, the native token of the Ocean Protocol project
Our Slovakian license is approved!
The license is another achievement along our path to becoming the most well-regulated exchange in Europe
"Lights, Camera, Trade!" Trading Competition
Get ready for the zondacrypto rebranding trading competition!
Zonda is now zondacrypto
Your favourite crypto exchange is getting a new look and added features!
How is Zonda working during long May weekend?
Please note that during Long May weekend, our customer support team will be available as usual. However, during ...
Important Notice: We are delisting LUNC
To provide the safest trading experience for our customers, we regularly review each token on the exchange to ...
We’ve partnered with crypto tax experts Cryptiony!
Get 20% off when you sign up with our promo code
We are listing Fetch.ai (FET)
We are listing $FET, the token of the Fetch.ai project, on Monday 24 April 2023.
4. 08 Phishing: types and examples
Phishing is a type of fraud that involves impersonating another person or institution in order to extract data ...
4. 07 Investment scams. What to look out for?
Investment fraud is one of the most common recent threats that is oriented towards people who use the services ...
4. 06 Travel Rule
Travel rule is a rule well known from the traditional banking sector, which states that all funds sent from one ...
4.05 Crypto taxation in Poland
Every year in Poland, more and more people are investing in cryptocurrencies. This involves, among other things, ...
4.04 Illegal Activities in Crypto
In this lesson, we explore recent statistics and discover insights about criminal activities related to ...
4.03 DLT Pilot Regime
The Regulation of the European Parliament and of the Council on a pilot regime for market infrastructures based ...
4.02 Digital Operational Resilience Act (DORA)
In this lesson you will learn more about the Digital Operational Resilience Act (DORA), which as a part of ...
4.01 Markets in Crypto Assets (MiCA)
In this lesson you will learn more about MiCA, which aims to be the first comprehensive law regulating ...
3.03 The Dow theory: principles and statements
This lesson helps you understand the principles and statements of Dow’s theory.
3.05 Candlestick charts and patterns
This lesson focuses on understanding candlestick charts and patterns.
Invezz / Interview: Volatility, liquidity and what happens next for crypto – zondacrypto exchange
Anyone who has ventured into the cryptocurrency world will agree with one thing: the volatility is unmatched. Be it plummeting or soaring prices, crypto markets are notorious for the pace at which they move. In this interview, Stanislav Havryliuk, our COO, assesses the current situation on the crypto market.
US regulators are cracking down on stablecoins!
Blockworks spoke to our COO Stanislaw Havryliuk about the recent SEC action against @PaxosGlobal and stablecoin #BUSD
Should we expect to see similar action against #USDT and #USDC? Which #stablecoin is the safest option?
Meet the person that is creating ripples of growth in the crypto space
Our CEO Przemysław Kral is making headlines again!
In this feature from FoxInterviewer, he discusses the skills needed to succeed in the emerging digital assets industry, the importance of KYC and AML procedures, and the tools he is building at Zonda.
Business Insider recently had a chat with our CEO
Zonda’s CEO Przemysław Kral recent spoke to Business Insider about the importance of consumer safety and compliance in the crypto sector.
Read the full article, along with additional commentary from our COO Stanislav Havryliuk
How will the US banking crisis affect crypto? Our CEO spoke to Benzinga
The collapse of Silvergate has sent shockwaves through the crypto industry. Where will US crypto businesses now go for banking services?
Zonda CEO Przemysław Kral recently spoke to @Benzinga about this issue and the problems it could cause.
Zonda is now zondacrypto!
As the exchange continues to evolve and grow, we're thrilled to announce that we're rebranding and changing our name to better reflect our vision and values. We're still the same team you know and trust, but with a fresh new name that captures our spirit of innovation and customer-centric approach.
Some things may look a bit different but don’t worry - all operations remain the same and your login details work as usual.
Stay tuned for more updates and exciting changes as we embark on this new chapter together. Thank you for your continued support and loyalty!