The crypto market back in 2021 drew in a good number of investors and they are now experiencing their first ever crypto winter.
Bitcoin was trading at sround $48,000 at the start of the year but its value then quickly crumbled during the springtime and fell under $18,000.
The second largest crypto Ethereum was trading at around $3,800 at the start of 2021 and is now trading at $1,305.88 on coinmarketcap.com as of now I am writing this post.
This isn't the first time that crypto winter is happening but this time investors are finding it different.
Experts generally agree that the market is in crypto winter and investors should get accustomed to these periodic flat or negative trends.
One of the reason expert Teh says is that this time the crypto market has more people than before. Meaning that more people were effected and there is more noise in the market as more people talking about it.
According to Teh, investors expected the market to behave differently from stocks or assets in a situation of high inflation but that hasn't happened and left many crypto investors frustrated and confused.
Cole shares that the downturn and subsequent winter is similar in many ways to housing crisis in 2008 and 2009.
According to him, there were unrealistic expectations that the value of houses were going to continue increasing in the mid 2000s before the crash.
It's similar to the expectations that many crypto investors had over the past couple of years.
And then the hacks on crypto exchanges and crash of a few crypto firms had to play its part.
