Crypto Seasonality: A perspective

13 April 2022| ZebPay Trade-Desk

Bitcoin (BTC) is the world’s largest crypto, also the 1st-ever one. It’s plenty of prices bolted up into it the least bit times, and every resultant coin, otherwise called altcoins, is tied thereto in some way. However, Bitcoin isn’t a stable asset. The world’s first crypto is systematically locomoted in value, dropping or raising tens of thousands of greenbacks at any given point in time. Every four years, this volatility is anticipated to achieve a peak before blinking comparatively laboriously, thanks to the Bitcoin halving. The Bitcoin halving is programmed into the Bitcoin blockchain. Every four years, the halving occurs, and therefore the rewards for mining Bitcoin are cut in half, effectively less Bitcoin is coming back into circulation with every block mined.

The market tends to correct when halving, with Bitcoin’s value rising due to its additional scarce nature, solely to crash shortly later on as investors take advantage of their newly-earned profits, and the market overcorrects as a result. When Bitcoin crashes, more investors begin worrying regarding their investments and will move funds into altcoins.

Crypto seasonality being a good or bad thing depends on the perspective of the person viewing this and from an investor’s personality also. For one, newer traders would possibly see seasonality as an honest thing, as they will currently invest in Bitcoin at a lower price. Long-time holders, however, might scorn crypto seasonality as their Bitcoin holdings are nearly sure to crash each four years, forcing them to attend out the lows or reinvest their holdings into altcoins. That said, one can nearly always expect Bitcoin to rise in value thanks to supply and demand. whereas this belief isn’t a guarantee, the leading crypto has traditionally risen to higher levels when halving thus far.

When Bitcoin’s worth crashes, investors are virtually forced into the altcoin market to continue generating profits. That said, altcoins are entirely unpredictable, and a project that’s massively standard in the future} can crash suddenly the next. The altcoin market is additionally filled with scams Exchanges are often hacked and holdings were stolen. There’s very little telling what can happen in the Wild West that’s the altcoin market.

Sure, there are safer ways than others. Investors should purchase into established passive financial gain strategies like Uniswap’s (UNI) liquidity pools, or participate within the mining or staking method of a coin instead of merely investing in it, however there’s still an inherent risk aboard these processes.

While there may well be multiple solutions to crypto seasonality, one crypto startup, seasonal Tokens, is developing a doubtless safer difference to ancient commercialism methods. Seasonal Tokens are designed to rise and go over the course of 9 months, hoping to supply investors with a lot of stable alternatives to Bitcoin’s downtrends.

The project breaks up its tokens into four seasons: Spring (SPRING), Summer (SUMMER), Season (AUTUMN), and Winter (WINTER). Ideally, investors can purchase Spring tokens since they’re the most affordable to supply and hold them over the amount once they become the foremost expensive.

As the seasons change, capitalists can switch these Spring tokens to Summer tokens, which might presumptively rise in worth next, and then on through the later seasons. In a very} good scenario, an investor would trade Spring for Summer once Spring tokens are the foremost expensive to produce, and Summer tokens are the cheapest, increasing the entire variety of tokens they own. That’s when the summer token rises to heights.. the investors would be happy to exchange them for the season’s coins

which at their lowest then, ultimately accumulating a lot more. 

These peaks and valleys are the reason behind interval-based production cuts, something like the Bitcoin halving. For example, in June, Spring token production is going to be cut in half, creating a costlier supply than alternative tokens. By the time Spring rolls around again, users would convert their Winter tokens to Spring tokens, all the while not contributing extra real-world funds. Supported by this model, seasonal Tokens hope to supply a plus that’s perpetually accumulating and rising in value, giving a secure house for investors to transfer their funds throughout a Bitcoin bear market.


Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum, etc. are very speculative and are subject to market risks. The analysis by the Author is for informational purposes only and should not be treated as investment advice.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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