"Bitcoin plunge…investors increasingly worry about a 'new crypto winter'"

As the downturn in the virtual asset (cryptocurrency) market deepens, reports say voices of concern are growing among investors about the possibility of a new 'crypto winter'.

According to The Wall Street Journal (WSJ) on the 2nd, Bitcoin and major digital assets have recently been under downward pressure along with weakness in risk assets overall. In recent months, zero-yield tech stocks, loss-making startups, and meme-theme stocks have been rapidly shunned by the market, strengthening risk-off sentiment, and virtual assets are said to be facing the same selling pressure. Bitcoin is trading at a price about 30% below this year's high.

Patrick Hossman, Chief Investment Officer (CIO) of B&B Plus, said, "Investors are reducing risk exposure as they view the market and economic outlook pessimistically," adding, "A move in which Bitcoin retreats to around $60,000 cannot be ruled out. I do not yet see the pain as over."

The WSJ noted that the virtual asset market has repeatedly experienced strong rebounds and sharp price collapses since its early days. In past 'crypto winters', Bitcoin and major tokens fell by as much as nearly 80% before rebounds, and such down cycles have been accompanied by investor morale and fraud issues, the report said.

However, it analyzed that this selling phase also differs from the past in some aspects. Large exchange bankruptcy events like Mt. Gox or FTX do not exist at present, making it difficult to determine market direction.