The fall of the cryptocurrency market continues and seems to have no end at least in the short term; while this is beginning to have repercussions on companies focused on the crypto ecosystem, since it has been reported that some of these companies have begun to cut staff and freeze withdrawals, seeking to contain the losses generated so far this year, especially in the last weeks. What will happen to the cryptocurrency ecosystem?

The cryptocurrency market concluded another negative, with the main cryptocurrencies falling more than 10%, as is the case with Bitcoin, which fell for the first time since the end of 2020 to below $20,000; and Ethereum, for its part, fell to trading below $1,000, a price we have not seen since January 2021. It seems that the “crypto winter” is as strong as expected, driven by inflationary pressure which is sought to be combated. at all costs. In addition, it should be noted that the capitalization of the cryptocurrency market has fallen significantly, since just a few months ago it was above 3.2 trillion, and today the massive sales and panic among investors have dragged it to the bottom to around 833.94 billion.

As a consequence, it has been reported that some companies focused on the cryptocurrency ecosystem have suffered great losses and are in a rather tough situation, so different companies that grew exponentially with the rise of cryptocurrencies in recent years, now they take extreme measures to minimize their losses and maintain stability.

One of them is CoinBase, the company that offers a cryptocurrency exchange and went viral by being the first crypto company to be listed on the New York Stock Exchange. The company has announced that they will be downsizing 18% of their employees, while other crypto firms such as Gemini, BlockFi, and Crypto.com will take similar measures. On the other hand, some startups that emerged with a lot of projection and potential within the DeFi world, such as Celsius, have frozen withdrawals on their platforms due to liquidity problems, which shows us how many problems these companies will face until inflation is stabilized and this cycle of recession ends. Entrepreneur Mark Cuban has given his opinion on the subject, stating that many of these crypto companies will disappear after this economic crisis, so we would be experiencing a filter similar to that experienced in the DotCom, in 2002, when solvent and well-structured companies were consolidated. It is vitally important to choose serious projects, well structured and in good financial health when investing! In other news, US businessman Bill Gates has severely criticized cryptocurrencies and NFTs, saying they are based on the “Greater Fool Theory”. This theory states that it is possible for investors to make a profit by buying too expensive and then selling it to another investor. He also sarcastically mocked NFTs, especially the “Bored Ape Yacht Club” collection, saying that it was inexplicable how these images could reach such a high value, ironically saying that they would surely make the world a better place. Bitcoin has managed to trade back above $20,000, after dropping dramatically  below $18,000. It appears to be building a support zone for a pullback to $23,000 and will then most likely continue with a bearish move. BTC/USDT 1D (TradingView Chart). For its part, Ethereum is trading above $1,100, after reaching close to $900. It appears to make a similar move to Bitcoin, with a resistance level near $1,280. ETH/USDT 1D (TradingView Chart). The bear market has undoubtedly left quite a few wounds and doubts in a large number of investors. Everything looks set to continue down for at least a couple more months, since drastic measures will be required to combat high levels of inflation, which will have a great impact on the crypto market and on volatile assets in general. However, as mentioned, this will be a very interesting filter in which the projects that offer the most value will be able to consolidate. Without further ado, we wish you an amazing week.