WSJ: Investors Worry About the Onset of a New "Crypto Winter"

ChainCatcher news, according to The Wall Street Journal, the sell-off in the cryptocurrency market is intensifying. Bitcoin and other digital tokens are experiencing a broader downturn that is sweeping across all high-risk trades in the markets. In recent months, unprofitable tech companies, speculative shell companies, and “Meme” stocks have all fallen out of favor. Patrick Horsman, Chief Investment Officer of crypto asset management firm BNB Plus, stated that as investors grow increasingly pessimistic about the market and economic outlook, they are reducing their risk exposure.

Horsman said: “I think we might see Bitcoin drop all the way back to $60,000. We don’t think the pain is over yet.”

Strong rebounds and nauseating declines have been recurring since the early days of the crypto industry. In previous “crypto winters,” Bitcoin and other major digital assets lost as much as 80% of their value before reversing. Each previous cycle (including the winter of 2022) was, to some extent, triggered by investor concerns over widespread fraud.

The current sell-off is reassuring to some and difficult to explain to others, because there is no new Mt. Gox or FTX—collapses of these crypto companies once fueled broader market crashes.