Grayscale: Crypto winter will last 250 days

Investment company Grayscale Investments relies on its own cryptocurrency cycle scale and sees a good opportunity to make money in the current downturn in the markets.

According to the Grayscale report, crypto markets repeat their cycles and, for example, for Bitcoin, such a market cycle is four years or 1,275 days. The scope of the cycle becomes clear when the realization price of a cryptocurrency falls below the current market price.

The selling price is determined as the sum of all assets sold divided by the market capitalization of the asset. This gives an idea of ​​how many positions are profitable, if at all. The BTC realization price fell below the market on June 13, which is identified by the Grayscale jackal as the beginning of a bearish cycle.

The company’s analysts are confident that the downturn in the markets will last for about 250 days, starting in July, and all this time will provide an excellent investment opportunity.

In the report, the company looks back at the 2012-2015 cycle of goals, which saw the rise and fall of the market on the Silk Road darknet, as well as the fall of Mt.Gox, leading to the first major market downturn. The development of Ethereum, cryptocurrency exchanges and wallet providers has again led to the achievement of new heights in the markets and, accordingly, to a new fall, the authors of the report say.

Grayscale believes this is a normal process that repeats itself every few years. Analysts do not name the exact reason, but they believe that this happens at each new stage in the development of the industry.

Previously, Nassim Taleb, author of The Black Swan, suggested that the period of crisis in the crypto asset market could last “forever.” The economist believes that the word “crypto winter” misleads traders.