What is a crypto winter? When crypto prices stay low for months
By SendPay Business · · 2 min read
A crypto winter is a long period when crypto prices stay well below their highs, trading slows and interest fades. It is the crypto world's name for a drawn-out bear market.
Past crypto winters
After the boom of late 2017, prices fell through 2018 and stayed low for much of 2019. Another winter followed the late 2021 peak: in 2022 Bitcoin fell below $20,000, and the collapses of Terra, Celsius and FTX shook confidence across the market.
What tends to happen
- Prices and trading volumes drop and stay low.
- Weaker projects run out of money and shut down.
- Crypto firms cut staff and marketing.
- Firms that took big risks with customer funds can fail.
Staying careful
Downturns are when weaknesses show. Check who holds your crypto and whether it is lent out, avoid putting in money you can't afford to lose, and be wary of anyone promising guaranteed returns to win you back.
Where SendPay fits
SendPay platforms let customers buy, sell and hold crypto, held with regulated partners, alongside GBP, EUR and USD accounts, powered by licensed partners. SendPay doesn't offer trading tools, DeFi or lending.
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What happened with FTX?
A large crypto exchange collapse with lessons on how customer funds are held.
FTX lessons →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.