Crypto Winters: A Perilous Return?

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Just as the stock market dances through its seasons, the crypto realm experiences its own chilly winters. These are not the gentle frosts of spring, but rather the brutal, unrelenting freezes where prices plummet like a stone dropped into a well, and the once-bright hope of investors dims into a shadowy haze.

The good news? Winters do end, like a tale with a happy ending. The bad news? They always return, like a grumpy old man who never leaves. So, my dear investors, shall we brace for the next icy storm?

Winter is (probably) coming

A crypto winter is best imagined as a long, dreary march of falling prices, where even the bravest coins shiver in the cold. The market’s mood turns gloomy, as if the entire sector has been caught in a thunderstorm of doubt.

During these times, the chatter of social media grows quiet, like a classroom after the teacher has left. News outlets, once eager to report on crypto’s every move, now turn their heads away, as if avoiding a disagreeable relative.

The most recent winter began in early 2022, a frost that lingered until the third quarter of 2023. While the Federal Reserve’s rate hikes, like a mischievous child shaking a tree, caused some of the chill, the true villain was the FTX collapse, which added a layer of ice to the already frozen landscape.

Historically, Bitcoin‘s (BTC) halving, a trick that once led to a surge of joy, only to be followed by a winter of sorrow, has been a harbinger of both triumph and despair. Its peaks in 2013, 2017, and 2021 were like fireworks, brief and dazzling, before the cold winds of winter blew them out.

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Why does Bitcoin loom so large in these winters? Because it holds more than half the sector’s treasure, like a giant with a crown. When it stumbles, the fall is not contained-it spreads like a plague, infecting all other coins.

When prices plummet, it’s as if the market dons a magnifying glass, revealing which projects are real and which are merely fancy hats. The winter is a great sorter, separating the wheat from the chaff, or in this case, the gold from the glitter.

The last winter’s damage was enough to make even the most ardent crypto evangelists question their faith, and the casual tourists to flee, leaving behind only the brave-or the foolish.

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Bitcoin’s descent was a steep fall, more than 70% from its 2021 peak. Ethereum, too, suffered, dropping 74%, while Solana, the once-gleaming star, lost 96% of its value, a casualty of the FTX disaster, which was as shocking as a thunderclap in a quiet village.

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The last halving, in April 2024, was a mere 16 months ago. If history is a reliable guide, another winter is on the horizon. Prepare, dear investor, for the snow is coming.

How to prepare

Assume another winter is coming, like a grumpy uncle who never leaves. Expect discomfort when your investments sink, and craft a plan that can weather the storm.

Those who bought Bitcoin, Ethereum, and Solana during the last winter found their pockets full of gold, provided they could endure the chill. Selling, however, is like throwing your coins into a river-losses are sealed, unless your investment’s foundation has crumbled.

When the winter strikes, rein in your risk like a horse in a storm. Many coins are on sale, but only the finest will rise again, like a phoenix from the ashes.

Remember, your investments may need to wait for a year or more before the market blooms again, like a seed waiting for spring.

The ideal strategy is to automate small, steady purchases of your chosen assets, like a clockwork mouse gnawing away at a cheese. Commit to holding for years, even if you don’t need the plan now. Better to be greedy than to weep when coins wither like flowers in a drought.

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2025-08-27 14:58