- The last quarter of 2021 marked peak crypto bullishness and six-figure bitcoin price targets.
- Hyped forecasts didn’t materialize and some experts are calling for a strung-out crypto ice age.
- Crypto influencers open up about the turn of events and what they’re doing during the slowdown.
The second half of 2021 saw the crypto market reach maximum bullishness among many enthusiasts who had stocked up on digital assets at peak prices. Many crypto influencers and fund managers alike called for a six-figure bitcoin price by the fourth quarter of 2021 or the first quarter of this year.
But near the end of last year, bitcoin sliding from its November peak — and early signs that inflation could prompt the
to end the era of easy monetary policy — made it clear that these hyped forecasts would not come to fruition.
On May 4, the central bank unleashed its second interest-rate hike of this cycle, and investors couldn’t dump their risky bags fast enough. In the week that followed, the stock market plunged, and bitcoin tumbled by 27% in one week.
Over a month later, there’s still no sign of relief, and the largest cryptocurrency’s price has fallen from its peak by more than half. The carnage has extended to various other altcoins that online influencers have recommended investors buy, including terra luna (LUNC/LUNA, -98% from its peak), chainlink (LINK, -73% off highs), and solana (SOL, -84% from its apex).
In fact, some experts such as Paul Jackson, Invesco’s global head of asset-allocation research, aren’t just calling for a crypto winter, but rather an “ice age” where prices could stay low for years.
Insider caught up with seven crypto influencers to see how they’re reacting to the turn of events, whether they expected the plunge, and what they’re doing during the slowdown.