Charles Hoskinson says that a new crypto winter has descended upon us, and the market is "in the panicked blood in the street phase."
Meanwhile, German economist Holger Zschaepitz reckons that the current Bitcoin correction is smaller than it was in 2020.
"If this is your first crypto winter, then welcome"
Hoskinson has welcomed everyone to the crypto winter who has not yet experienced such a period on the market before.
He stated that he has seen many of these crypto decline periods, saying that these "winters" always arrive unexpectedly, and everyone starts panicking at first. Within several months, a bottom is usually found, and then it takes a long time for the crypto market to climb back upward.
If this is your first cryptowinter, then welcome. Been through many since 2011 and they always hit like a cold ice bath. We are in the panicked blood in the street phase. It clears in weeks to months as a bottom is found. Then a long climb up the ladder https://t.co/R1QMF0NgRI— Charles Hoskinson (@IOHK_Charles) May 12, 2022
Current crypto crash is not unusual, an economist says
Holger Zschaepitz has taken to Twitter to remind the crypto community that the free fall of the crypto market that is happening currently is not the first one, and there is nothing unusual about it history-wise.
Currently, he wrote, the leading cryptocurrency, Bitcoin, has plunged 61% from its all-time high in November 2021.
In 2020, the price collapsed roughly 80%, when BTC briefly fell below $4,000.
To put things into perspective: The current #Cryptocrash is nothing unusual in historical terms. #Bitcoin has now lost 61% from its peak. In 2020, the correction was around 80%. pic.twitter.com/4SRl6uwH3b— Holger Zschaepitz (@Schuldensuehner) May 12, 2022
The previous crypto winter occurred in early 2018 and lasted until 2021, when Bitcoin rose to $39,700 in January and then soared above $63,000 in April after Tesla bought BTC and began to accept BTC payments. The latter did not last long; Elon Musk froze them, citing the controversial issue of Proof-of-Work mining related to the environment.
Earlier today, Bitcoin fell to a low of $26,300, but by now it has recovered to the $27,500 zone. The second biggest cryptocurrency, Ethereum, is sitting below $2,000, trading at $1,890.