Investment Fund CEO Feels Optimistic

Even as the bear market situation continues in the current cycle, the community is wondering when will crypto winter 2022 end. The ongoing crypto winter is currently accompanied by a macroeconomic slump which now has a direct correlation with Bitcoin (BTC). Meanwhile, several people in the crypto community are anticipating an end of the bear market environment. However, it remains to be seen if the bulls catch up before the end of December, which has traditionally been a good month for crypto.

Over the past few months, there have been a series of negative results from macro events. Thanks to Bitcoin’s correlation with S&P 500, the BTC price suffered losses on various occasions. With Bitcoin continuing to follow the equity markets, it remains to be seen when the crypto market breaks out of the bear situation. In September 2022, experts predicted BTC to fall around 20% if it continued to follow its correlation with S&P 500.

‘Closer To The End Of Crypto Winter’

In the current context, it is critical to predict how the market will perform going into 2023. Rayne Steinberg, CEO of digital assets investment firm Arca, felt the market is “closer to the end of the slump than not.” Speaking to Fortune Crypto, he expressed optimism saying the current situation feels like the bottom is in. However, he warned that it is difficult to say when and if things will get better considering the current macroeconomic drawdown.

“About a month and a half ago, we really started to see crypto market correlations break down to the broader asset classes, although cryptocurrencies like Bitcoin have largely moved with stocks.”

Huge BTC Movement By Institutional Accounts

Recent on chain activity suggested that the institutional investors shifted BTC in huge quantities from Coinbase Pro. Data showed that the large players moved out $48,000 BTC worth around $940 million. Interestingly, a major part of it was long term holding. As much as 32,000 BTC was held for around three to five years, the data indicated. Also, the BTC whales are holding the lowest supply in around three years. According to Santiment, the small and mid-sized addresses have actually increased their Bitcoin holdings over the same period. Currently, BTC addresses holding 0.1 to 10 BTC now account for an all time high of 15.9% of Bitcoin’s total available supply.

With BTC struggling to maintain the $20,000 range, the central question of when will crypto winter end becomes important. As of writing, BTC price stands at $19,161, down 2.27% in the last 24 hours, according to price tracking platform CoinMarketCap.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.