Investors Worried About a “Crypto Winter” as Fed Ends the Easy-Money Era

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Investors Worried About a “Crypto Winter” as Fed Ends the Easy-Money Era
25 Jan 2022
6 min read

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News Synopsis

The crypto industry is facing a sudden fall in the market with the bitcoin being dramatically down. Bitcoin has the precious highest value in November last year which amounted to $69,000. But the cryptocurrency has seen a sudden fall in its value ever since.

The value of bitcoin fell down to the lowest in six months at $38,000. Seeing the current situation, investors are worried about the crypto market going into a “Crypto winter”, where prices fall sharply and fail to recover for more than a year as the Federal Reserve tightens monetary policy. Investors believe that not only Fed Policy, but the crypto market can be headed towards an “ice age,” where the prices remain low for years and investors lose interest. 

Jeff Gundlach, also known as “Bond King” has said that the Central banks and governments have played a major role in jacking up these markets, and the policies reserve more than their role in depressing the crypto market. He also said that he thought that bitcoin was mostly boosted by the torrent of money from the Fed and the USA government during the pandemic.

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