Few will have noticed that the prices of almost all cryptocurrencies are currently under water. Bitcoin (BTC) is currently trying to hold the level at around $30,000 and actually all altcoins have gone down nicely. According to the founder of the Delta Blockchain Fund, Kavita Gupta, we are in a true “crypto winter”. This period could last at least a year, according to Gupta.
crypto winter
In a interview with Bloomberg Gupta clearly states that the crypto market has entered a crypto winter after the significant correction. In addition, the current price action is quite similar to previous crypto winters. She therefore also states that it is plausible that this period of downward price pressure could last at least a year to a year and a half.
Gupta even expects the bitcoin price to drop all the way to $14,000 before it stabilizes. The same fate befell the price of the second largest cryptocurrency, ethereum (ETH)to wait.
“I think this is just the beginning of the crypto winter. […] We are going to stay here for at least a year and a half. I don’t believe Bitcoin will go back to $45,000, $50,000 or $60,000 in a year and a half. […] I am very surprised that people expect Bitcoin to continue to hover around $30,000. I do expect it to drop to somewhere between $14,000,” Gupta said.
New all time high?
It is obvious that the near future holds little positive in store if we are to believe Gupta. Nevertheless, she firmly believes that bitcoin will just hit another all-time high once the crypto winter comes to an end. In addition, the current market correction offers an opportunity for more adoption of cryptocurrencies such as bitcoin and ethereum. In addition, Gupta suggested that the more companies continue to include bitcoin in their balance sheets, the greater the chance of another spike.
Gupta also spoke briefly about the recent collapse of the Terra (LUNA) ecosystem. According to her, the demise of the TerraUSD (UST) stablecoin will change the future of the stablecoin sector. Stablecoin projects will be forced to protect the stablecoin’s peg with fiat currencies, not other cryptocurrencies like TerraUSD did.