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Is Crypto Winter over? Bitcoin drives the market, but there are still warning signs


Bitcoin (BTC) exceeded $50,000 on Monday, February 12, which has driven the entire crypto market upwards. And it is that the upward effect of the largest cryptocurrency by market capitalization drags a large part of the ecosystem with it. That has led many investors to wonder if, with the Halving in sightfinally the the end of crypto winterwhich implies not only the fall in crypto prices, but also the decrease in transaction volume and little interest in the development of new projects based on the Blockchain.

Market enthusiasts expect BTC to hit all-time highs given, due to the bullish moment that the market is going through, they see that It is very possible that Bitcoin will continue climbing. But, on the other hand, the cautious see a market overheating which raises some future fixes. Therein lies the dilemma regarding whether the crypto winter is over or not, it will only be known with time.

Crypto investors facing a dilemma

The truth is that there is an event in sight that could mark a before and after for Bitcoin: the Halving. The consensus in the industry is that block reward halving It will take place between April 19 and 21, 2024.

Analysts suggest that this Halving could have distinctive characteristics at a fundamental level, which could lead to a historic event with possible long-term effects on the value of Bitcoin. And what is good news for BTC They are also for the entire ecosystem.

So things are, Ambit consulted with three crypto exchanges in the City about its projection and, of course, regarding whether the feared crypto winter it is coming to its end.

The crypto rally under the scrutiny of analysts

“Although the end of crypto winter cannot be confirmed, the current trend is positive, especially related to Bitcoin ETFs“, Explain Maximiliano Hinz from Bitget to this medium.

This ETF has generated significant new demand,”surpassing the amount of bitcoins accumulated by MicroStrategy in more than 5 years“in just the first quarter of the year. For the analyst, this increase in demand directly impacted the price, “evidenced by the bullish rally prior to Halving”. And he explains that this is an unusual phenomenon, given that in the previous event the price of Bitcoin decreased.

However, Hinz warns that, despite what is to come, the volatility of the Bitcoin market suggests that “the rules can change at any time“, forks unpredictable whether there will be a correction or whether the upward trend will continue in the near future.

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Along the same lines, it was expressed Julian Colombogeneral director of Bitso Argentinawho explains that a new bullish cycle and the revaluation of Bitcoin prices are anticipated, for “multiple factors“, such as the approval of Bitcoin ETFs in the US and the participation of new institutional actors, which influence its value upwards, more “not only because of the halving”.

Colombo indicates that, although historically a pattern of lows is observed before Halving followed by historical highs, This event has only been run three times, which is not enough to establish a secure correlation, in tune with Hinz. However, the Bitso leader is confident that the continued adoption of Bitcoin and the long-term increase in its value, supported by renewed interest in cryptocurrency trading, continue driving the bullish rally.

Bitcoin: an unstoppable asset?

While there is caution among analysts when it comes to answering whether the crypto winter is over, What does exist is a consensus that by pure nature of the currency, regardless of Halving, Bitcoin will continue to risewith possible future corrections, but without abandoning the rise.

Matias BariCEO and co-Founder of Satoshi Tangomaintains in dialogue with Ambit that, throughout 2023, there were positive signs from both the sector and the traditional investment market, which supported today’s prices in the crypto market. Now, facing a special year for Bitcoin, and with the support of global regulations, “Cryptocurrencies are beginning to have greater presence and respect from investors”.

Thus, Bari explains that the value of Bitcoin and, in general, cryptocurrencies, have been demonstrating that they are “an important store of value” that transmits confidence to investors of different profiles. And he adds: “The recent price, taking into account the time of year, is a sign to take into account. With Halving, the amount of Bitcoins to be issued is reduced and Like any limited issue currency, it will increase in value”.





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