Is crypto winter coming to an end?

Since Cryptocurrency is a relatively new addition to the world of financial investments, we don’t have a long history to look back on to help us predict how things might work in the future. Cryptocurrency can traditionally be quite volatile with both massive highs and plunging lows occurring within days of each other. In fact, headlines around digital currency often talk about large personal gains or the huge losses of those who have chosen to engage in cryptocurrency investments.

The history of cryptocurrency

Digital power may have existed since 2009, but it only became really popular among mainstream investors in 2017. 5 years is a short time to be able to collect data and use it to analyze and predict what will happen in the future. However, in the short time it has been popular, Cryptocurrency has already experienced a number of boom and bust cycles, which is only proof that as an investment choice it is volatile and risky. However, what we also know is that since 2017 there have been many people who have made good money from the right investments, and it is the thought of being able to repeat this for themselves that has helped keep people interested and will continue to do so .

Cryptocurrency in 2022

Even those who have not yet been influenced to invest in Cryptocurrency will not have been able to escape the market crash that digital currency experienced earlier this year. We saw some major changes in the spring and summer of this year, including the collapse of some major lending platforms such as Three Arrows and Celsius. Alongside that, many well-known (and not-so-well-known) cryptocurrencies saw their values ​​plummet, some within hours. With no real long-term track record to look at, it was difficult for people to predict what this might mean for market value in the long term, and general advice was to hold on to your investments and hope they would return. This so-called ‘Crypto winter‘ is one that has shaken the confidence of many investors, especially those who may not invest professionally but are interested in seeing that cryptocurrency ownership could be their key to early retirement.

Are things picking up?

Although the first half of 2022 was a difficult one for cryptocurrency values ​​across the board, we have started to see a slowdown in declining values ​​in recent weeks. That doesn’t mean we’ve seen any significant improvement, but it does mean that the value of big players like Bitcoin seems to have stabilized. But as things stand now, things have not yet started to take off as anyone would have liked. For example, ‘The Merge’ with Ethereum has begun and it was hoped that this would help increase its value again, but it is still nowhere near the value of its previous peaks near $5000. However, it does not mean that you should be discouraged, the decrease in falling values ​​is a good sign and many feel that the Crypto winter is thawing and that we can see more positive news around digital currency in the future.

Will Crypto Winter Actually End?

Cryptocurrency is definitely one of those topics where people have strong and different opinions. We won’t really know if Cryptocurrency will increase in the future until it actually happens, but that doesn’t stop experts from having their opinions and predictions.

Many crypto investors claim that a major advantage of crypto is that it does not depend on a central regulator, like the gambling industry and PayPal casinos in the UKbut some experts say this is why the market has been so volatile recently and argue that changes could mean we see a less volatile market.

Regulation on cryptocurrency

One thing we know about digital currency is that it is largely unregulated and that this may change in the future. Although there have been no official announcements surrounding the likes of Bitcoin, it is the only currency that can be traded without regulation. Day trading places limits on certain financial transactions that can take place, and even those dealing in stocks and shares must do so within the rules, to ensure that everyone is protected.

So far this has not happened with Cryptocurrency, but many argue that some formal regulation is due and could be introduced soon. The UK Government have recently talked about their own Stable Coin and their support for things like NFT investments; which can be said to be the first steps towards more regulations being introduced in Great Britain. While many like the unregulated and anonymous nature of Cryptocurrency, most recognize that investments being protected and there being rules on who can operate as a trading platform can only be a good thing.

But while we can’t predict if and when the regulation will be introduced, we do know that something like this is likely to have an impact on cryptocurrency value – although experts disagree on whether this will initially be a positive or negative change.

The future of cryptocurrency

There are some experts who believe that a crypto winter like the one we’ve seen is one that could last for several years, in which case we probably won’t see an end to it in 2022. However, others feel that it’s already coming to an end, and we is starting to see a positive change in cryptocurrency value. The unproven nature means that realistically no one is able to predict exactly what will happen. Instead, those who are already invested in Cryptocurrency or those who want to add it to their investment portfolio, it is best to keep an eye on the constantly changing values ​​and of course newspaper headlines to see what changes are underway and what impact it is likely to have. to have