While many altcoins and DeFi projects may not survive the harsh “crypto winter”, it is arguably the best period for Bitcoin to prove its dominance and completely shake off any doubts about its ability to act as a resilient store of value for people from all across the globe. The current situation in the market seems to be disheartening and brought hopes of the whole community down, but there is a glimpse of brightness in the future for the biggest coin.
Unsaturated markets show which assets are worth investing in
The current situation in the market is quite dangerous for the crypto industry in the long run, but it will undeniably change in the nearest future when the crypto winter is over and only the strongest projects reappear during the next bull run.
Bitcoin is in a unique position. It has been gaining cash inflow or, at least, kept it positive while Ethereum has been losing cash rapidly for over 4 weeks after the initial hype surrounding the merge died down. Other crypto assets have been performing poorly creating a good grazing ground for doomsayers and skeptics to continue building their narrative that cryptocurrencies do not have any actual value.
With many tokens simply disappearing from the public discourse due to the contraction of the crypto market in general, it is worth pointing out that the industry now has just several resilient networks that can easily survive the winter and return even stronger next year when the global recession is behind us. However, only Bitcoin seems to be doing fine.
BTC has strong fundamentals
Recently, representatives of the US government stated that Bitcoin is too big and too powerful to fall. The market dynamic supports this claim. While other coins have been jumping up and down in value, Bitcoin managed to stick to a reasonably high support level of $19K despite dipping to $18K at some point.
Bitcoin is losing value slower compared to other assets despite the harsh crypto winter. It may be enough to convince big-time investors to continue using BTC as a hedging mechanism against the US dollar.