In the first quarter of the year, trading volume on one of the world's leading cryptocurrency exchanges fell by 44 percent. Parallel to this, interest in the cryptocurrency market continues to decline.

Coinbase, the largest crypto exchange in the USA, announced a net loss of 430 million dollars, while the stocks of the stock market fell 15.6 percent overnight. This is worse than analysts' expectations.

Coinbase went public in April 2021, when interest in Bitcoin peaked. Now his biggest loss is in the area of ​​transaction fees. There is a full 35 percent decrease here, which is the main loss of the company in this area. Still, Coinbase has clarified that it does not expect these losses to be “permanent.”

coinbase partnership

On these and other developments, experts are now discussing a new topic. Has the downturn in the crypto space gone beyond the “crypto winter” into a “crypto ice age”?

For example, the leading cryptocurrency Bitcoin is currently trading around $31,000. This is less than half of what it saw in November 2021. A similar situation exists for Ethereum, the second largest cryptocurrency. It's going much worse for projects like Solana and Terra.

In such an environment, Simon Peters, market analyst at trading platform eToro, says:

   “Cryptocurrency investors' biggest concern is when this decline will end. The market has been caught in a broader squeeze of investment markets struggling to decide where appropriate levels are in the wake of rate hikes designed to quell rising inflation in the Western world.”

In addition to these words, he says that what happened in Bitcoin is similar to the crash in 1929.

crypto winter

Interestingly enough, this “crypto ice age” is taking place in an environment where big players are coming and starting to take it seriously. On Wall Street, giants like JPMorgan Chase, Morgan Stanley, and Goldman Sachs have now formed teams focused on the crypto space. Coinbase, on the other hand, announced that half of crypto transactions are now carried out by institutions.

Another development that has hit Bitcoin and crypto is that the regulators, especially the Biden administration, are now taking serious steps in this area and their attempts to regulate. As a result, "ice age" concerns will continue until the market stops falling.