Potential catalysts for the winter of the digital currency market
In a related context, Bitfinex analysts pointed to specific catalysts that may lead to the beginning of the next “crypto winter.” Among these catalysts are regulatory tightening. Increased regulatory scrutiny and stricter regulations could reduce investor confidence and cause a widespread sell-off in the market.
In addition, analysts pointed to macroeconomic factors. Which may lead to long-term selling in the digital currency market. Such as a major downturn in the global economy or major financial crises.
Finally, Bitfinex analysts noted that market saturation could be a potential catalyst for a crypto winter. A natural correction is expected, driven by profit-taking and market saturation, especially after the initial bullish stages following the halving event.
