Swiss Banking giant UBS Believes That Crypto Winter Is Starting

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Last Updated on 21 January 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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Contrarian views are important. Whereas yesterday we let a Bitcoin maximalist have his say and stated that the great number of HODLers should be seen as a positive sign. Today we let the other side speak.

James Malcolm, Head of FX Strategy at Swiss Banking giant UBS believes the first few weeks of 2022 point to the start of an all new crypto winter. In a widely read client alert this week, he claimed:

High-flying stablecoins and decentralized finance projects are almost all certain to suffer great difficulty from the authorities in the coming months.

Furthermore, UBS expects that rampant speculation on crypto networks:

Inevitably invites closer oversight to guard consumers [and] protect financial stability.

As we said in the beginning of the year, the crazy bull cycle of 2020 and 2021 could be followed by a downturn as usually Bitcoin bullruns only last for two years. Furthermore, as UBS repeats, the announcement by the Federal Reserve of only a few weeks ago that they plan to return to higher key rates triggered a fall in the price of both tech stocks cryptocurrencies.

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2017 2018 bull run

The term crypto winter itself is of course nothing new. After prices rose dramatically at the end of 2017, Bitcoin, ether and most other cryptocurrencies experienced a fall that was har to watch for everyone on the sidelines of the cryptosphere and even harder for those HODLing actual coins.

We’ll see what 2022 has in store for us. Judging by the first few weeks of 2022 compared to the first few weeks of 2021, it’s still hanging in the balance, but we definitely need some direction soon.

Given that the whole of the crypto market is severely down this morning and follows what tech and stock markets did, this might be the first sign of things to come. Will be interesting to see the weekend developing.

At the time of writing, Bitcoin is trading at $39k and Ether at $2.8k.