Many experts say another “crypto winter” is coming. So why is crypto blocked? It's important to remember that in this latest cycle, crypto assets aren't alone. The stock market has also been suffering a decline, as US policymakers seek to control inflation by tightening the money supply and raising interest rates. Vociferous opponents of cryptocurrencies have been quick to celebrate the death of the blockchain, insisting that all cryptocurrencies are fraudulent.
The cryptocurrency exchange said it hasn't been harmed by cryptocurrency companies seeking bankruptcy protection. The crypto ecosystem has been firmly tied to the traditional financial system, and the dollar dominates crypto markets just as it does in traditional financial markets. Therefore, cryptocurrency prices are typically quoted in dollars, most cryptocurrency transactions involve dollar-linked stablecoins, and dollar-linked stablecoins are widely used as secure collateral for crypto loans. Co-founder of automated cryptocurrency trading platform Coinrule, Oleg Giberstein, believes that cryptocurrencies are suffering the same strains as other parts of the economy, leading to falling prices.
Given the old investment adage “buy the fall”, investors may now be looking for a piece of the volatile cryptocurrency market in the hope that this will mark a temporary decline rather than a long-term bear market or an extended crypto winter.