Crypto Winter: Why did the Cryptomarket Crash?
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Every market has its ups and downs, and the crypto market is no exception. After a phenomenal rise in 2021, Bitcoin and other cryptocurrencies continue to decline. Some experts call it the 'crypto winter.'
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What is a crypto winter? This term basically means that prices have dropped a long way and then stayed low for weeks or months. The signs are everywhere: Terra (Luna) crypto crash in early May dragged the prices even further down, adding to the recession, and later on a lending platform Celsius Network halted withdrawals, prompting a sell-off that pushed Bitcoin to a 17-month low. And even though Celsius has since then repaid a substantial amount of its outstanding debt to Maker (MKR) protocol, signaling that the troubled crypto lending platform was trying to stave off a complete collapse amid credible rumors of insolvency, sentiment among crypto traders remains bearish.
So what is going on with the crypto industry and why is everybody referring to this year’s market situation as the new Crypto Ice Age? In short, why is crypto crashing?