What is crypto winter?

After bitcoin prices peaked between 2017 and 2018, prices entered a long-term downward trend. Prices, which reached a record high of $20,000 in the final weeks of 2017, entered a downtrend throughout 2018. Prices have fallen as low as $3,000. This period has entered the cryptocurrency literature as the “crypto winter.”

On November 10, 2021, bitcoin broke a historical record at $68,789 after peaking in 2017-2018. After that date, prices entered a downtrend. Cryptocurrency investors fear a new crypto winter in the markets. In the chart, we see the change in bitcoin price after peaking on November 10, 2021.

Bitcoin peaks and lows since Nov. 10, 2021; from $68,789 to $33,187. In other words, bitcoin has fallen to nearly 50% of its peak value.

Crypto winter is time to focus on real projects

David Marcus, one of the directors of Facebook-Meta, made an important post drawing attention to a possible crypto winter. “Cryptocurrency winter is the best entrepreneurs building good companies. It’s time to focus again on cryptocurrencies that solve real problems, not junk tokens.”

According to conjuncture theories, economic prices in the long run follow phases of bottom – rise – peak – decline – low. According to this theory, the prices of every economic asset enter a downtrend when they reach their peak. There are fears that the downward trend in bitcoin prices will repeat the “crypto winter” of 2018.