It doesn’t help that memories of the last “crypto winter”—a phrase endemic to the digital-asset space that refers to a sharp slump followed by months of doldrums—are renewing fears that a repeat could be playing out currently. The last such decline happened in 2018, when Bitcoin fell roughly 80% and subsequently took more than a year to reach another high.
“Even though Bitcoin has its own very significant fundamental underpinning, there is that element of just rampant speculation that plays a role,” said Jurrien Timmer, director of global macro at Fidelity Investments.
This article was provided by Bloomberg News.