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Europe's Largest Crypto Manager Warns of a Tough Crypto Winter

"We haven't seen Bitcoin in a recession yet," a CoinShares strategist tells CNBC.

By Finst News
• 3 min read
Europe's Largest Crypto Manager Warns of a Tough Crypto Winter

"We haven't seen Bitcoin in a recession yet," a CoinShares strategist tells CNBC. Her view: the bear market is far from over.

According to CoinShares, the crypto winter will last longer than many expect. Meltem Demirors, the company's chief strategy officer, told CNBC. "We expect losses for tech stocks and crypto," Demirors said. "There are no upside catalysts in the near term." People have "not seen Bitcoin in a recession yet."

In the second half of the year, the crypto market lost two-thirds of its market capitalization. Additionally, the global market cap has fallen below one trillion dollars. Bitcoin is currently at 70 percent of its all-time high.

Demirors cites inflation, energy crisis, war in Europe as reasons. These factors are pulling down the entire tech market. But crypto is also grappling with other issues: a huge liquidity crisis caused by many bankruptcies and the Terra ecosystem crash. Still, Meltem Demirors offers positive news: Bitcoin will reach a new ATH after the winter. ‘We’ll forget the pain of the coming months in 2024.’

CoinShares, founded in 2013, is Europe’s largest asset manager and a pioneer in the crypto space. In 2014 the company launched the first regulated bitcoin investment fund.

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