It is clear that the market has now officially ushered in crypto winter. The market prices of various digital assets indicate this. However, as expected, investors in the space are wondering how long this crypto winter is expected to last. From previous markets, the market may be long-term, but Cardano founder Charles Hoskinson offered his thoughts on how long he thinks the bear market will last.
Preparing for months of Cryptowiner
As the prices of major cryptocurrencies such as Bitcoin and Cardano have fallen, speculation abounds as to when the market will bottom. For the most part, the negative sentiment among investors in the space didn’t help much as prices continued to fall. However, that hasn’t stopped some from trying to determine when the market will bottom.
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Cardano founder Charles Hoskinson addresses the market in a whole new way, showing what he thinks will happen in the market. His initial tweet welcoming those who started their first crypto winter also further set the timeline. For the Ethereum co-founder, he believes this downward trend will continue for weeks to months.
“If this is your first crypto winter, welcome,” said Hoskinson. “Have been through so many times since 2011 and they’ve always been hit like a cold bath. We were in the blood of panic on the street stage. It clears up in weeks to months as the bottom comes in. And then long climb the ladder.”
ADA continues to suffer
Of all the digital assets hit by crypto winter, Cardano (ADA) has been one of the hardest hit coins. The digital asset, which hit an all-time high of $3.10 last year, has lost most of its value by May 2022 following the introduction of smart contract functionality.data from Messari It shows that the digital asset is currently down 85.39% from its all-time high.
ADA trading 85% below ATH | Source: ADAUSD on TradingView.com
Once bears have pulled the cryptocurrency below $0.5, it appears to have lost hope of recovering to the coveted $1 level. This means that the asset is now trading well below its 50-day moving average, an important indicator of short-term movements.
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In the long run, ADA continues to underperform. Sentiment is now entirely in favor of selling, making this a seller’s market. ADA investors have not been spared either, as it is now one of the worst profit performers, with more than 70% of investors holding large losses.
At the time of writing, the digital asset is trading at $0.454.
Featured image from Cointribune, chart from TradingView.com