Recently, many crypto experts and crypto news resources have been full of information about the impending crypto winter and the imminent end of the “bullish” cycle.
What is crypto-winter and whether it is worth being afraid of, let’s take a closer look at everything.
Crypto winter is a period of time when the prices of cryptocurrencies experience a prolonged “bearish” trend. This usually happens after a period of sustained growth, as investors start to cash out and take profits. Crypto winter can last for several months or even years, and during this time, many investors may lose a lot of money. But for some of the professional traders who trade with the help of such trading assistants as a KuCoin autotrade bot, this cycle is not something terrible, but on the turnover, it can turn out to be very profitable.
The arguments of analysts are very convincing – there have already been such periods in the history of cryptocurrencies, and they began after five waves of bitcoin growth. Now bitcoin has already shown 4 waves of growth and the final fifth is expected to be 68-75K $. After that, in theory, the market should be oversaturated as much as possible, the crypto bubble will burst, and the rate of the main BTC cryptocurrency will show a prolonged drop of 30-40%.
There is an alternative point of view. Its adherents are convinced that, in light of the deep introduction of blockchain into our lives, the entry of institutions into the market, and the gradual adoption of cryptocurrencies by governments around the world, we should expect bitcoin to grow soon to 100, 200, 500 thousand $, million$ or higher.
In the current realities, crypto-winter may come, but it will pass quickly and painlessly. The bitcoin price is unlikely to fall by more than 25-30% from the current one and recover within 3 – 4 months. So it can be called more of a crypto-fall.
Should we fix profit/loss or not?
If you are an investor, then in the event of a sharp decline in the value of assets, it is better to sell part of the cryptocurrency and wait for a more favorable period to re-enter the market.
Thus, you can not only fix the profit but also partially hedge yourself from possible losses. Trading in such conditions will be more difficult, but more interesting.
If you are a trader, then, most likely, you will have to change the usual tactics of work and move to a more conservative strategy.
As for those who are just waiting for a chance to buy cheap coins – it’s better to wait a little longer. Most likely, the fall in prices will not be as significant as many people think.
It is worth noting that crypto-winter is not something to be afraid of, but rather an opportunity for savvy investors to make a profit. In the current market conditions, crypto-winter may come, but it will pass quickly and painlessly. So, for those who are waiting for a chance to buy cheap coins – it is better to wait a little longer. Most likely, the fall in prices will not be as significant as many people think.