Crypto Winter

 The crypto market has been shaken in 2022, with two trillion dollars in losses caused by price drops in several cryptocurrencies, as well as network and exchange failures. Nobody is safe from the Crypto winter, not even Google. Philipp Schindler, Google's chief business officer, attributed a slowdown in revenue growth, in part, to decreased ad spending by cryptocurrency companies and other financial firms during Alphabet's third-quarter earnings call. The recent crash of Terra USD and Luna was the most significant cause. Terra, which was once lauded for providing cutting-edge blockchain investments to users all over the world, is now being blamed as the catalyst for the 2023 Crypto Winter.

BTC crypto winter.

In May 2022, $2 billion in UST was withdrawn and liquidated from the Anchor Protocol. This put pressure on LUNA as arbitrageurs sought to profit from the price differential, widening a gap between LUNA and UST that was never meant to grow so large in the first place. The Luna Foundation attempted to bridge this gap by injecting more UST into the system (remember, UST is burned as LUNA is minted), with the goal of regaining control and balancing the prices of both cryptos. With a flood of LUNA entering the market, its value could not be sustained and plummeted. Attempts by the Luna Foundation to use Bitcoin as reserves and to stabilize UST/LUNA also failed, resulting in a simultaneous injection of Bitcoin into the market — an oversupply that caused Bitcoin's price to fall.

During the 2018 cryptocurrency meltdown, venture capitalist Eugene Etsebeth coined the phrase "crypto winter." It primarily refers to a period in which the bitcoin market performs poorly, which has a significant impact on investor sentiment. The term is analogous to a stock market downturn. There have been several previous crypto winters, the most recent being the market fall in early 2018. In this situation, the majority of cryptocurrencies are affected. In a down market, there is a chance that certain currencies perform exceptionally well. Because of the extreme price volatility, predicting when and how long a crypto winter will last is impossible.

Crypto Winters are known to last a long time. It has even lasted as long as two years in the past. As a result, there is no set limit for Crypto Winter. Instead, it comes to an end when the cryptos recover from the bearish trend after a slightly upward or steep movement.