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Crypto Winter? #
Will there or won’t there be a ‘crypto winter’? That’s the question being asked on the prediction platform Myriad.
While many speculate about the arrival of a ‘crypto winter’, users of the prediction platform are much more optimistic. Read below where they’re putting their money.
Crypto Winter #
The crypto market has historically followed a certain pattern.
After a spectacular bull market (uptrend), there was typically an explosive peak, followed by a complete collapse in prices that took several years for the market to recover.
This last and often painfully long phase is also called a bear market, or ‘crypto winter’.
Because Bitcoin reached a new high of $126,000 in October and has since fallen by more than 30 percent, there is now widespread speculation about whether the dreaded crypto winter has begun.
Myriad Users Are Optimistic #
Users of the prediction platform Myriad don’t think so. On the prediction market ‘Is crypto winter coming?’, only 9 percent of positions are betting that a new crypto winter will start soon.
That’s much less than a week ago, when that percentage was still at 30 percent.
The rest of the positions, about 91 percent, expect that the crypto winter is not on the cards for now.
When Is It Crypto Winter? #
The prediction platform defines a crypto winter according to four criteria.
Those criteria are: 1) a Bitcoin price of $35,000 or less, 2) an Ethereum price of $1,000 or less, 3) MicroStrategy’s (MSTR) stock price of $50 or less, 4) a total crypto market capitalization of $350 billion or less.
If at least three of these four criteria are met, it can be called a crypto winter according to the platform.
Shift in Market Sentiment #
The change in sentiment comes at a time when the crypto market is showing some signs of recovery after a weeks-long downtrend.
Since Bitcoin reached a provisional bottom at $80,500, the price has been climbing back to the current level of $93,000.
The market now seems to be awaiting the new interest rate decision from the US Federal Reserve, which will be announced next week.
According to prediction markets, the chance of the long-awaited interest rate cut is now about 90 percent. If interest rates are cut, it could give the crypto market a new boost.
Many eyes will also be focused on the $100,000 level. If Bitcoin reclaims that level, it will strengthen confidence in the continuation of the bull market.