Despite Bitcoin’s 68% Losses, Analyst Predicts ‘Warm Winter’

Bitcoin may have more than halved from record levels, but “there’s a lot more to it,” said Edith Jung, general partner at Race Capital, declaring a “crypto winter” and heralding a “warm winter.”

“In a way, the ‘warm winter’ will essentially push away everyone who really [θέλουν] to be there for short-term gain,” the bullish analyst told CNBC’s Street Signs Asia last week, stressing that cryptocurrency is a long-term play.

The term crypto winter refers to a prolonged period of price compression of digital currencies in the market.

Cryptocurrencies have lost about $1.9 trillion in value since the peak of a massive rally in 2021.

Bitcoin, the world’s largest digital currency, is down about 68% from an all-time high of nearly $69,000 in November.

Jung said she remains bullish on digital currencies in the long term because their appeal lies in the fact that “crypto is really about the Web3.”

Web3 has become a buzzword among people in the cryptocurrency industry. Proponents say it’s the next generation of the Internet, one that’s “decentralized” and not owned by a few big tech giants.

Proponents suggest that crypto and blockchain technology could be a big part of this. For example, a Web3 service can run on a specific blockchain, such as ethereum or solana. Users may be required to hold cryptocurrencies associated with these blockchains in order to use a particular service or even to have ownership in that application or company.

“I think there’s a whole generation of Internet users who really believe that ‘you can’t monetize my data anymore … the Internet should belong to us,'” Jung told CNBC.

“That’s why there’s such a push in crypto, because the ownership of ethereum or solana is really the user who owns that piece, which is just one piece of this internet.”