Despite Price Slump, Warnings Of Crypto Winter, Blockchain Is Still Smoking Hot

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Last Updated on 3 February 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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If it looks like a duck, it sounds like a duck and walks like a duck, it’s probably a duck. Well that seems to be the case for most things in life, but not for crypto. Despite severe warnings of a crypto crash and UBS foreseeing a crypto winter, Wall Street investors continue to pile money into the smoking hot crypto market like never before.

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Unlike 2017-2018

Although even ardent Bitcoin supporters (commonly known as Bitcoin maxis) admit that the beginning of 2022 has not been as expected, they are convinced that the current pullback in crypto won’t turn into a more severe downturn known as crypto winter.

The last time this took place was in late 2017 and early 2018, when bitcoin lost as much as 80% since its then-record high. That crash was known as the widowmaker.

Konstantin Richter, CEO and founder of Blockdaemon claimed:

If we are entering ‘crypto winter,’ it’s unlike the bear markets we’ve seen before. The crypto market today has institutional adoption. They see the promise crypto holds. Many institutions are long-term bullish on the tech.

Furthermore, investments from Wall Street into blockchain firms remain very impressive at this point, with crypto exchange FTX, led by crypto billionaire Sam Bankman-Fried, raised some $800 million in January. While digital asset infrastructure firms Fireblocks and Blockdaemon gathered some $550 million and $155 million respectively from venture capitalists who are convinced crypto is the way of the future.

Michael Shaulov, CEO and co-founder of Fireblocks explained on CNBC that the crypto market:

Has been volatile from the very beginning. What is very clear to us is that the investment in the infrastructure is not going to stop.

Of course, if those are the investment sums being poured into crypto during a downturn, what would be the amounts when we see another upswing?

aa-w / Depositphotos.com