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- Vitalik Buterin sees the crypto winter as good for the market saying that only sustainable projects will survive in the long term.
- Crypto winters usually see long periods of market consolidation with strong volatility.
The crypto market witnessed another major correction over the weekend as volatility ensue. As the Russia-Ukraine war possibility looms over and the U.S. Fed all to increase the interest rates, equity and crypto markets continue to remain choppy.
Ethereum co-founder Vitalik Buterin believes that another ‘crypto winter’ could be certain, and believes it to be a good thing for the overall market. Since November 2021, the broader crypto market has entered a strong correction with investors losing hundreds of billions of dollars.
The Bloomberg Galaxy Crypto Index has tanked 45 percent from its all-time high. Similarly, Bitcoin and Ethereum have corrected 40 percent each from their peak prices.
A similar situation happened in 2018 which led to a prolonged correction referred to as ‘crypto winter’. The 28-year old billionaire explained:
The winters are the time when a lot of those applications fall away and you can see which projects are actually long-term sustainable, like both in their models and in their teams and their people.
Related: Vitalik Buterin discusses key updates for Ethereum 2.0 launch in 2022
Crypto winter could be good for the market
Buterin believes that the crypto universe could actually benefit from the recent correction in coin prices. During an interview with Bloomberg, Buterin said:
The people who are deep into crypto, and especially building things, a lot of them welcome a bear market. They welcome the bear market because when there are these long periods of prices moving up by huge amounts like it does — it does obviously make a lot of people happy — but it does also tend to invite a lot of very short-term speculative attention.
However, the Ethereum co-founder remains “surprised” by the way the market is moving over the last year. He remains unsure whether the market is showing some volatility or crypto has actually entered another winter. In an event earlier this month, Buterin said:
It does feel like the crypto markets kind of flip the switch from being this niche group that’s controlled by a very niche group of participants and it’s fairly disconnected to traditional markets into something that behaves more and more like it is part of the mainstream financial markets.
Bitcoin also set up for a crypto winter until 2024
In another news, Du Jun, co-founder of cryptocurrency exchange Huobi has predicted that Bitcoin is all set up for another crypto winter. Jun said that the next Bitcoin bull run might now arrive by late 2024 or early 2025.
The Huobi co-founder said that the Bitcoin bulls markets closely follow the halving event. Bitcoin has witnessed a major bull run every subsequent year after its three previous halvings in 2012, 2016, and 2020. However, post these rallies, we have entered strong corrections similar to the crypto winter of 2018. Speaking to CNBC, Du Jun said:
If this circle continues, we are now at the early stage of a bear market. Following this cycle, it won’t be until end of 2024 to beginning of 2025 that we can welcome next bull market on bitcoin.
Read More: Bitcoin bull run won’t be until the end of 2024 to the beginning of 2025: Huobi Co-founder
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