Cryptocurrency Market Approaching Another ‘Winter,’ Says Buterin
The charts have not been much in favor of virtual currencies for the last couple of months through the new year. After hitting record-breaking highs in the fourth quarter of the last year, the coins were met with market freefall that lasted for a few months until a couple of weeks ago. Although the coins seem to be holding on all right, no one can deny how steep the fall has been for them. As per the reports, the fall of the virtual currencies from last November is averaged at a staggering 40% range. While addressing this phenomenon of the crypto market, Ethereum co-founder Vitalik Buterin stated that the trajectory would mean another ‘winter.’
Vitalik Buterin is undoubtedly one of the few figures with tremendous celebrity in the crypto space. So much so that the Ethereum co-founder’s statements often are capable of changing even the market movements. Now, as Ethereum lost nearly 40% of its highest value ever in the last year, Buterin’s words have come to reassure investors about its future projections. Before entering into the trade, traders should get more information about how Ethereum will perform in the following years in terms of valuation. A bear market, in the opinion of Buterin, does not concern anyone who has been in the field for long.
A bear market, in the opinion of Buterin, does not concern anyone who has been in the field for long. Moreover, a market cannot be profitable, involving only long-term entries. Dips like this one provide the impetus needed for the asset to attract short-term Investments. In this way, the asset can also improve its valuation in the market for the long-term as well. During the last winter in 2018, Ether has reported investment in 12,588 tokens which resulted in a book that took the price to the moon. Although these short entries look profitable, they are essentially gaslighting the market to get huge profits, otherwise known as the pump and dump schemes.
The dips, to add further, help with classifying the projects that could withstand the market for a long time. Many of the poorly managed projects are identified only during the bearish market, essentially protecting investors from falling for such schemes. Although the crypto space tries to be inclusive, not everyone thrives on the blockchain, just like in any other field. Moreover, such volatility gives the perfect opportunity for the projects to show how strong they are in the market, as false promises would help hold the businesses in such pressing times.
After such a huge attack on Wormhole, Buterin believes that the crypto ‘winter’ might help the projects to work on fortifying security and technology. As Ethereum is long due in rolling out its recent upgrades, we can take this comment from the CEO as an informal confirmation for it. The next upgrade from Ethereum is expected to address the long-standing criticism on the blockchain regarding speed, scalability, and gas fees. Rumors are that this upgrade would prove seminal for ETH price movement in the future.