Investor Optimistic Long-Term Prospects Crypto
Navigasi - Bitcoin has slumped about 68 percent from its highest price reached in November 2021. Currently, many believe that the crypto industry is in the crypto winter phase.
|Investor Optimistic Long-Term Prospects Crypto|
The term crypto winter refers to a prolonged period of decline in the price of digital coins in the market. Cryptocurrencies have lost about USD 1.9 trillion in value since the peak of the massive rally in 2021.
Even though we are in the crypto winter period, one of the industry players, namely general partner at Race Capital, Edith Yeung said that the crypto winter is still quite warm or in the sense that it is still not too severe.
"In some ways, a warm winter will basically encourage everyone who really wants to be there for short-term gains," Yeung said.
In his statement, Yeung highlighted that cryptocurrency is a long-term game. Yeung also said he remains long-term bullish on digital tokens as their appeal lies in the reality of crypto developments.
Crypto Industry Problems
Although Yeung said it is currently a “warm winter” for the crypto market, the problems for the industry so far are unprecedented.
The nearly $2 trillion drop in the value of the cryptocurrency was triggered by the sudden collapse of an algorithmic stablecoin called terraUSD which rendered its sister luna token worthless.
Several crypto companies, including now-bankrupt hedge fund Three Arrows Capital, have had substantial exposure to terraUSD.
Meanwhile, lending companies like Celsius, which took risky trading bets, faced liquidity problems and also filed for bankruptcy. These problems have caused contagion throughout the cryptocurrency industry.