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.
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 Three Arrows Capital, 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.
Bitcoin, 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.