While many speculate whether the current situation is already a bull market or just a significant market correction, Cardano founder Charles Hoskinson seems to have no doubts. In his tweet, he welcomes the community, in the cryptocurrency winter.
Tough situation boosts negative sentiment
“Buy when there’s blood in the streets, sell when there’s greed” – so says one of the leading doctrines of financial markets, including crypto. For the past few months, we have seen that sentiment has been particularly negative, which should translate into a rebound. However, this is not happening, and as a result Bitcoin is diving, and the entire cryptocurrency market is going down with it.
This fact has been pointed out among others by the founder of the Cardano Project (ADA), Charles Hoskinson. In one of his latest tweets, he addresses the crypto community with the following words:
“If this is your first cryptocurrency winter, welcome. I’ve been through many since 2011 and they always hit me like a cold ice bath. In the street phase we are in the blood of panic. The overshadowing subsides within a few weeks or months after finding the bottom. Then it’s a long climb up the ladder.”
As you can see, Hoskinson is tempted here to set a time frame in which he thinks the market should encounter a bottom and begin the process of unwinding. In the best case it will take a few weeks, in the worst case we may be facing further months of declines.
Cardano in a deep bottom
Bitcoin alone has lost as much as 63% of its value from the peak reached in November 2021 to the bottom on May 12.
Cardano (ADA), on the other hand, is in an even worse situation. The coin, which has recently enjoyed an ecosystem capable of creating smart contracts with a huge community of supporters behind it, saw its peak in September 2021 at $3.16. Since then, it has lost nearly 88% of its value, reaching a previous bottom of $0.383. It is interesting to note that although ADA has been one of the fastest growing networks of the last two years and has been recording gigantic gains measured from the bottom reached, it has only managed to improve its previous ATH of early 2018 by 125%. Following Hoskinson’s words, we can surmise that Cardano is still in search of its ultimate rebound point. Will this be the start of a new rally, to even higher peaks? Perhaps the coming months will bring an answer in this regard.
