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Written By Berry Mathew

Many elements have harmed cryptocurrencies and the ecosystem globally, where many have gone directly bankrupt. Others have kept their level of negotiations to the limit although not taking false steps.

The regulation of crypto assets and exchange companies has become more intense, and public institutions and governments, in general, are searching for rules that mainly protect users of this digital market. 

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Events that have affected the crypto market

As the months go by, the situation worsens concerning the events happening around the cryptocurrency market.

Not only the variations in the price of crypto assets are indicative of a critical situation that could be clarified by this year, 2023, and change course to favor all those investors who decided to stay on their feet during the crypto winter.

Large companies and recognized investors suffered the ups and downs of the digital financial market, where they are still searching for exchange platforms that allow them to have stability in their digital assets and not expose themselves to the risk of losing their capital due to improper management of the same.

The bankruptcy of commercially renowned platforms in cryptographic negotiations demonstrated the vulnerability of this digital system in adverse situations in which, despite being decentralized, they were affected by the institutional measures of the traditional financial and economic market.

In 2022, the scenario for crypto investments was not at all favorable, and even so, digital currencies fought hand-to-hand to stay in the ranking and not let what has cost to build for more than a decade collapse.


Impact of the bankruptcy of crypto platforms

With the fall of the crypto Exchange, it seems ironic. Still, investor confidence plummeted, not because of the concept that digital currencies represent, but because of the protection of digital assets by third parties who did not have an emergency plan before a critical scenario like the one suffered in 2022 by these digital financial instruments.

The money that was lost on the exchange platforms was excessive. But, unfortunately, to date, an action plan has yet to be demonstrated to favor all those clients of said companies who deposited their capital to obtain future profits thanks to cryptographic investments.

If something is evident, it is the loss of value of the tokens over time, which was maintained until December 2022, where the crypto winter, despite being a marked trend, has not given a definitive upward change that shows that it is developing Rising prices of digital assets.

The leading digital currency par excellence and market capitalization that has struggled to stay in the place that its users have given it is Bitcoin; this strength allows traders to make investments, even if they are minimal; the important thing is to focus on maintaining positive balances at the end of the financial day.

Let us remember that the last historical maximum of Bitcoin occurred at the end of 2021, where, compared to its current price, it has decreased by more than 70% after the extreme fluctuations and critical moments that the digital financial market has experienced.

The long period of the crypto winter is the main cause that has led these exchange platforms to the abyss, where Terra Luna began to collapse. However, today is a positive expectation that a bullish change could occur.


A Crypto Winter Showing No Change

It is neither the first nor the last crypto winter that the digital financial market is going through; considerable time has already elapsed that has allowed us to evaluate, analyze and outline the periods or phases in which digital currencies have fluctuated and marked the various trends.

The past year’s challenging financial and economic blows significantly increased the uncertainty, mistrust, and fear of investing on the part of novice and experienced investors.

The price variation evidenced in recent days by Bitcoin and other cryptocurrencies could be a respite for investors who, at least in small proportions, can recover part of the lost capital.


The exciting thing about this market is that once this bearish phase ends, it will be the bulls that lead the market and give a demonstration of significant price evolution where, without a doubt, many will want to enter the market, and those already consolidated will see the fruits of the wait.