Bitcoin has been on a rollercoaster ride over the past year, with a plunge to below $4,000 in March 2020 followed by a massive rally to reach an all-time high of over $69,000 in November 2021. The subsequent correction saw the price plummet to around $30,000, but now it has bounced back to that level, leading some to declare that the “crypto winter” is over.
However, the crypto industry is still recovering from its wounds. The industry has been through a lot in the past year, from the Terra-Luna crisis to the FTX scandal. Hedge funds like 3AC have fallen, and regulatory oversight and intense supervision have been introduced in response to incidents like FTX’s Sam Bankman-Fried awaiting trial on charges of fraud.
Many companies in the cryptocurrency industry are still maintaining a “wait and see” attitude due to the lawsuits and additional legal regulations that have already been filed. While the price of Bitcoin has risen, the industry is still different than before, and the wounds caused by last year’s scandals will take some time to heal.
Despite this, some experts believe that the recent price rally is due to the re-examination of the cryptocurrency market as one of the breakthroughs in the banking crisis. The positive mood after the banking crisis has contributed to the rise in prices, and there has been quiet progress behind the scenes. Ethereum completed a successful upgrade last week, and its price rose above $2,000 again in just six months.
Institutional investors are still on the lookout, but evolution and innovation continue in the crypto space. While the amount of money involved in DeFi projects is still low, recruitment has not yet begun in earnest, and investments by venture capital firms have declined significantly, the industry is still moving forward. The recent price rally is a positive sign, but the wounds of the past year will take time to heal, and the industry still has a long way to go before it can fully recover.
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