What the 2022 Crypto Winter Reveals About Bitcoin’s Latest Sell-Off
Bitcoin has plunged in a sharp freefall over the past 48 hours, unnerving retail investors and prompting traders to brace for further declines. When markets look this bleak, the 2022 crypto winter offers a useful reference for what can follow and how deep the damage may be.
The 2022 collapse was preceded by rapid growth: cryptocurrencies surged from 2020 into late 2021, with Bitcoin moving from around $8,300 to $64,000 over ten months. High-yield products drew large inflows, but rising US interest rates, a broader stock market correction and geopolitical shocks choked liquidity and pushed investors out of speculative assets, setting the stage for run-like withdrawals.
That stress cascaded: the TerraUSD breakdown and the failure of Three Arrows Capital exposed fragile leverage and prompted big outflows from platforms such as Celsius and Voyager, which lost roughly 20% and 14% of customer funds in the eleven days after the shock.
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