Is this (already) the end of crypto winter?

The bankruptcy of crypto company Genesis was almost considered a non-event and meanwhile people are only looking up when it comes to the Bitcoin price. Altseason is likely to start in a few days if this growth continues and macroeconomic data such as inflation and a declining dollar also help crypto. So the question which comes to mind is now: is the crypto winter already over?

Pivot

This weekend I listened to Pivot, the must-listen podcast for anyone interested in tech stories. Veteran tech journalist Kara Swisher and NYU marketing professor Scott Galloway discuss the latest in business, tech and politics. While the first ten minutes mostly focus on the American political landscape, it’s the rest of the hour that’s especially important. The latest episode, which went online last Thursday evening, mainly talked about the possible return of Bitcoin (and the possible demise of Twitter).

The crypto market has indeed started 2023 in true comeback fashion. The prices of most digital coins were sharply lower after a very rough 2022 at the start of the year and have risen since. In 2022, the collapse of Luna and the implosion of FTX led many to believe that we would face a very long crypto winter. Recent developments have however given investors a glimmer of hope.

5 billion dollars

A major factor in the market’s recovery was the announcement that FTX’s lawyers had located more than $5 billion in crypto and cash assets that could be used to pay back creditors. This news helped restore confidence in the market.

In addition, macroeconomic factors also helped the recovery of the market. The inflation spike seems to be over in the US on the face of it and if the Federal Reserve could soon start to reverse aggressive interest rate hikes which would see more investors return to riskier assets like digital currencies. If that happens we can really start to talk about an end of the crypto winter.

Right now, I see this as a relief rally, with probably a bit of FOMO (fear of missing out) that will push Bitcoin up a few more thousand dollars. The end of the crypto winter may be a bit too early to call, but we have at least seen the first green shoots.

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