Crypto Winter? "Black Swan" Author Predicts Full-Blown Ice Age
In a recent tweet, "Black Swan" author Nassim Nicholas Taleb has criticized the oft-repeated term "crypto winter," which is used to describe a period when cryptocurrency prices remain low for an extended period of time.The notion of seasonality, which implies that the current bear market will be followed by another crypto spring, is flawed, according to Taleb.The esteemed mathematician believes that the transitory crypto winter may degrade into a full-blown "ice age," referring to the period in history when glaciers covered large parts of the planet for roughly 11,500 years.
The term gained wide popularity in the media in 2018, the year the Bitcoin price collapsed by more than 80% within 12 months. The brutal crypto winter came after the historic bull market of 2017 that pushed crypto into the mainstream for the first time.
Fast forward to 2022, and all of the signs of your typical crypto winter are already there. As reported by U.Today, some major names, such as Terra and
, went underwater over the past two months. In the meantime, the leading cryptocurrency companies, such as BlockFi, Coinbase and Gemini, have fired a substantial portion of their workforce.
, the world's largest cryptocurrency, is down more than 70% from its record high, but some speculate that the $17,600 level might not be the ultimate bottom of the ongoing bearish cycle.
The cryptocurrency has managed to partially recover from the recent plunge, currently trading slightly above the $21,000 level. Yet, it remains highly correlated with the U.S. stock market.Source