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Crypto Winter: What is Behind the Collapsing Crypto Market?

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With a starking drop of Bitcoins’ value to $20,000, the most popular cryptocurrency is marking a massive fall of over 70% from its all-time high of $69,000 in November 2021. And witnessing the trend expert fear that the crypto market might be stepping into a long-anticipated crypto winter.

But, what is crypto winter? What has caused the colossal collapse of the crypto market? And will the crypto market stabilize again?

What is a Crypto Winter?

While there is no hard proof definition; the term, Crypto Winter, is derived from the popular HBO series “Game of Throne” and its iconic phrase, “Winter is Coming.”

Winter in the show highlights gloomy days and conflict in the fictional land of Westeros. In the crypto world, however, a crypto winter signifies a significant price drop of digital currencies for a significantly extended period.

Literally speaking, crypto winter is a period when crypto prices cool down. And the winter is over when the prices rise, stabilize, or heat up. And sitting at now approximately $20,00 per BTC, a 70% fall from the highest value of $69,000 Bitcoin is embarking on the start of crypto winter.

Crashing Bitcoin
Source: CoinMarketCap (14th June 2022)

But, what has led to the record-breaking collapse of the crypto industry?

What Led to the Current Collapse of the Crypto Market?

Many factors have contributed to the crypto market’s crash, including inflation and the Russia-Ukraine conflict. However, here are the top three reasons behind the ongoing crypto winter:

The Great Luna-Terra Crash

The steep crypto crash began two weeks ago with TerraUSA, Luna’s sibling currency, losing its ties to the US Dollar. Since both Luna and TerraUSD are algorithmically connected, Luna practically vanished following the collapse of TerraUSD.

The Digital currency’s value plummeted from $20 billion to nothing only in a matter of days. In a bid to recover, Terraform (the firm behind Terra) devised a strategy to sell all their Bitcoin holdings to restore the $1 peg, which ultimately failed.

As a result, the crypto market lost over $40 billion and snowballed in a trail of investment victims.

Skyrocketing Inflation

The US Federal Reserve has agreed to raise interest rates to reduce inflation. According to a Wall Street Journal story, the Fed will pursue an aggressive plan to raise debt prices, restrict spending, and contain record-high inflation. And the rapid rise in interest rates is widely seen as a leading indicator of an impending recession.

However, following the announcement, both the stock market and the crypto market plummeted; investors lost faith and began selling their digital assets, resulting in a crypto market carnage.

Read More: The Looming Global Debt Crisis: Developing Nations at the Extreme Risk

Celcius Network Freezing It’s Crypto Transactions

On Sunday, a popular decentralized finance platform, Celcius Network, stated that it is feezing all of its crypto transactions, given the extreme market condition. Following the closure, there was a massive sell-off, with all crypto plummeting.

“We are taking this necessary action … to stabilize liquidity and operations while we take steps to preserve and protect assets.”

Celcius Network

Moreover, according to Reuters, the firm has processed $11.8 billion in assets and $8.2 billion in loans as of May 17.

The Catastrophe Followed by the Crypto Winter

The concept of crypto winter doesn’t leave much room for crypto enthusiasts to grow. And the harsher side of the market crash is already shaping many crypto platforms in the form of significant employee layoffs.

For example, companies including Crypto.com. Coinbase and BlockFi have laid off hundreds of employees to survive the bear market.

The crypto bubble is bursting, and businesses in the crypto space are preparing for a steep recession. For example, Coinbase, one of the biggest crypto-based companies, has already laid off 18% of its workforce, accounting for roughly 1,100 employees.

Furthermore, the cryptocurrency market has fallen to a value of less than $1 trillion, merely one-third of what it was about seven months ago. Bitcoin, the most popular digital currency, has seen its lowest to $18,000 (approx) this week, the lowest since December 2002. And following the trend, many cryptocurrencies are devaluing at an astonishing rate.

Crypto Winter: When Will It Be Over?

There are no precise markers that may be used to predict when a crypto winter will end.

However, historical trends show that this isn’t the first time the market has experienced a crypto winter. And it’s reasonable to assume that the crypto winter will end at some point, with the crypto market returning to normalcy.

According to Forbes, the previous crypto winter lasted nearly two years, from January 2018 to December 2020; during which time Bitcoin lost over half of its market worth.

However, the crypto winter is not without a silver lining. Forbes, for example, states that a crypto winter behaves similar to a traditional bear market. It assists honest businesses in proving their investment while also weeding out new entrepreneurs.

“We have seen many Bitcoin corrections since 2011, but Bitcoin has returned strongly. It has been historically observed that bear markets are usually quick to plunge and never last long.”

Edul Patel, the CEO, and Co-Founder of Mudrex

Similarly, post this crypto-winter, the crypto market can expect a consistent crypto price increase, as seen after the 2018 crypto crash.

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From Gaza’s Genocide to Lebanon’s Bombing: The Assault on the Muslim World Expands

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What began with joint US-Israeli strikes on Iran on Feb 28, 2026, quickly spread across the region, linking Gaza, Iran, and Lebanon into a single, expanding, and unwanted conflict.

This is a series of the most volatile events of contemporary times. While a temporary ceasefire with Iran has opened the door for talks, the reality on the ground tells a different story. Gaza remains under genocidal devastation, while Lebanon is under heavy bombardment.

Resultantly, regional tensions are at their highest in years. However, this is not something happening in isolation but a large-scale genocide being unfolded across multiple fronts.

Gaza: The Genocide That Never Stopped

Even as attention shifted toward Iran, Gaza never saw even a bit of relief. More than 2 million Palestinians remain trapped, with the majority displaced internally. Entire neighborhoods have been flattened, and basic services, like water, electricity, and healthcare, have vanished.

Despite diplomatic developments elsewhere, Israeli strikes in Gaza have continued, reinforcing a central reality. The genocide in Gaza did not pause; rather, it became the foundation for a wider assault.

So, Gaza is not separate from the current regional crisis. It is where it began and where it continues.

The Iran Strikes That Changed the Region

On February 28, 2026, U.S. and Israeli forces carried out coordinated and unprovoked airstrikes targeting Iran. These strikes marked a significant shift from indirect confrontation to direct engagement. Even a primary school for girls was hit by the Israeli and US-led airstrikes in Iran, resulting in the deaths of hundreds of innocent lives.

In response to Israel’s act of aggressionand the United States’ Operation Epic Fury, Iran launched Operation True Promise IV. It also launched ballistic missiles and drones to retaliate.

After putting the entire region into flames, Israel declared a state of emergency, while regional airspace disruptions and security alerts spread across neighboring countries.

This heavy exchange transformed the conflict. What had been contained within Gaza now extended into a broader regional confrontation involving a major state actor.

Lebanon: The Expansion No One Could Ignore

If Gaza was the starting point and Iran the escalation, Lebanon became the clearest sign of expansion. So, even after a ceasefire announcement by the US, Israeli airstrikes across Lebanon resulted in:

  • Over 250 to 300 people killed within 24 to 48 hours
  • More than 1,000 injured
  • Dozens of strikes hit densely populated urban areas, including Beirut

These were among the deadliest attacks on Lebanon in decades. Crucially, these strikes continued despite the ceasefire framework announcement with Iran. Israeli leadership made it clear that they are not going to halt their heinous operations in Lebanon despite the long-awaited peace talks.

A Ceasefire That Did Not Bring Calm

The ceasefire announcement between the United States and Iran was presented as a step toward de-escalation. It opened the door for talks in Islamabad, raising hopes of stabilizing the situation.

However, events on the ground contradicted those expectations. Some of these events include:

  • Lebanon continued to face severe and unprovoked bombardment
  • Gaza remained under genocidal attacks
  • Regional military readiness stayed elevated

This created a fragile and uncertain environment in which diplomacy and escalation coexisted. A temporary ceasefire on paper did not translate into peace across the region.

The Strait of Hormuz: A Global Risk Point

Beyond the immediate Middle Eastern battle zones, the conflict has placed critical global infrastructure at risk.

The Strait of Hormuz, through which nearly 20% of the world’s oil supply passes, has become a central pressure point. Iran has signaled its ability to restrict or disrupt traffic through the strait if escalation continues.

This is to pressurize the US and Israel to think about what they are doing at least twice. So, even the possibility of disruption has:

  • Increased volatility in global oil markets
  • Triggered economic concerns far beyond the Middle East

This underscores a key reality that the conflict is not confined to borders, but its consequences are global.

A Connected Battlefield and The Muslim World

What is happening across Gaza, Iran, and Lebanon is not coincidental but a reflection of a wider ideology. This ideology has roots in Islamophobia, too, but the primary driver here is Israel, supported by the United States.

Each front reflects a different dimension of the same conflict:

  • Gaza: Genocide, humanitarian devastation, and mass displacement
  • Iran: Unprovoked and Imposed War
  • Lebanon: Expansion of active military operations by Israel

Although some countries are trying to help de-escalate the situation, such as Turkiye, Qatar, Pakistan, and Egypt, most have complex responses.

Especially the US military bases in Gulf countries such as Saudi Arabia, Oman, Bahrain, and Qatar are being attacked by Iran as a counter-strike.

Rather than observing these events in isolation, using a broader lens makes everything clear.

The future scenario could be a temporary stabilization as Iran brought their 10 points, while the U.S. brought 15 points for the ceasefire to be agreed.

While the efforts to make peace are underway, Israel is still involved in one of the deadliest assaults on Lebanon. The Muslim World should unite at this difficult time, not only for regional stability but also for global peace and prosperity.

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How Gaza Is Losing the People It Needs to Survive

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Gaza’s genocide is often described and portrayed through images of collapsed buildings and rising death tolls. But a deeper loss is silently unfolding amidst the genocide – one that cannot be rebuilt with cement or aid.

Gaza is losing its people – not only through death, but also through forced displacement, unemployment, blocked movement, and the collapse of education, as well as professional life.

Recent figures show how severe this shift has become. Gaza’s unemployment rate has surged to around 80%. Moreover, the overall economy of the Strip has shrunk by nearly 87%, reducing total output to just $362 million. When it comes to the GDP per capita, it has fallen to about $161, wiping out over two decades of development.

Even the people in Gaza are surviving from day to day just to live. At the same time, nearly 70% of Gaza’s population is under the age of 30. So, it is evident that the crisis is not abstract, but all of this is happening to the generation that should be carrying Gaza forward.

From Graduates to Survival

Before the genocide, young Palestinians invested heavily in education. Degrees in engineering, medicine, and business were seen as the only path out of hardship.

However, today, that pathway has completely collapsed. In this context, the story of Mahmoud Shamiya is documented as an example, a university graduate who now spends his days collecting firewood and fetching water in a displacement camp. His words capture the shift clearly: young people have become “aimless, jobless, and hopeless.

So, this is not a temporary setback, but an act of structural genocide. When an economy collapses and movement is extremely restricted, education loses its purpose. Degrees no longer lead to jobs, skills cannot be used, and ambition is replaced by survival.

Education Has Been Torn Apart

The damage to Gaza’s education system is systemic. According to recent credible assessments:

  • Around 658,000 to 660,000 students have lost access to regular education
  • Between 87% and 97% of school buildings have been completely obliterated
  • Immediate damage to the education sector is estimated at $870 million, rising to $3.8 billion over five years

So, in this extremely volatile situation, education has become impossible. Even emergency education funding has faded out. Out of nearly $198 million required, only about 3.3% is estimated to be secured.

This is a complete deliberate collapse of the education sector of Palestinians by Israel.  Students are not simply missing classes — they are losing entire academic years, and in fact, losing most precious years of their lives.

Rafah Is Controlling Who Gets a Future

Yet, for many young Palestinians, the only remaining path forward lies outside Gaza. This is only possible through scholarships, medical placements, or training opportunities abroad.

But that path runs through Rafah, and it is not open. There are hundreds of cases of capable students waiting for the only border to get reopened. For instance, there is a case of Mona Al-Mashharawi. She is a student who secured admission in a university in Algeria, but due to Israel’s restrictions and Rafah closure, she has been trapped for three years. She was meant to leave in November 2023.

There is a complete timeline of the Rafah border:

  • Rafah crossing was seized by Israel in May 2024
  • It reopened only partially in 2026, allowing a limited number of people on foot, just for health emergency cases
  • Movement remains extremely restricted, unpredictable, and insufficient for normal life

Who will be responsible for these innocent dreams and the futures of thousands of young people? Who can bring their most precious years back? It’s part of a broader genocide strategy of Israel to eliminate all the footprints of the Palestinian generations.

The Private Sector Has Been Crushed

Before the genocide, Gaza’s private sector accounted for around 52% of employment. It provided livelihoods through small businesses, services, and local industries.

However, today, that system has completely collapsed. Estimates indicate some harsh realities:

  • Up to 90% of economic sectors have been wiped out
  • Total economic losses are approaching $70 billion

The Loss of Skilled Professionals

The most critical loss is not visible in rubble, but it is the loss of people who make recovery possible.

It is evident that doctors cannot work without hospitals. Engineers cannot build without infrastructure, and teachers cannot teach without schools.

Reports now confirm the displacement of skilled workers during the genocide, adding another layer to the crisis. Those who left took with them education, experience, and institutional knowledge.

Those who remain often cannot function in their professions, and as a result, there is a vacuum.

Even if somehow rebuilding begins tomorrow, the people needed to lead that process are either gone, displaced, or unable to work psychologically or physically.

A Generation Forced Into Survival Mode

Gaza’s youth should have been its greatest strength, but now, they are the most affected group of the heinous genocide.

With absolutely no jobs, no stable education, restricted movement, and destroyed infrastructure, young people are no longer planning futures. They are managing survival day after day.

The long-term effects are clear:

  • Delayed or lost careers
  • Reduced economic recovery
  • Severe psychological trauma
  • Weakened social systems

When an entire generation is pushed into survival mode, the damage does not end with the genocide.

As of now, more than 80% to 90% of Gaza’s population depends entirely on humanitarian aid. The aid is itself extremely restricted, and resultantly making survival extremely challenging.

Even the water supply has been reduced to just around 10% of the overall daily requirement in Gaza.

After all this, one fact is certain: the capacity and the future of Gaza are being eroded in an unprecedented way by Israel and its allies. Unless the world realizes the quest for survival in Gaza, nothing is going to change!

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How Gaza’s Reproductive Life Was Systematically Destroyed

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A traditional frontline in modern warfare is typically a trench or a high military hotspot, but in Gaza, the concept of the frontline has moved towards unimaginable realities. The devastation in Gaza has been widely measured in destroyed homes, shattered hospitals, and tens of thousands of lives lost.

However, there is another dimension in the Gaza genocide that is being unfolded quietly. It is a strike at the very foundation of a people’s future. Israel is systematically moving the frontline of this genocide towards delivery rooms and neonatal wards.

All across Gaza, the conditions required for pregnancy, childbirth, and infant survival have been systematically dismantled. From the complete destruction of fertility clinics to the collapse of maternity care, the impact is no longer limited to the present. It ultimately extends directly into the future.

The Fertility Clinic That Lost Thousands of Embryos

One of the most striking examples of this collapse came with the destruction of Gaza’s largest fertility center. The Al Basma IVF Centre, a facility that offered hope to families struggling with infertility, was badly hit during the genocide. According to credible reports, around 4,000 embryos stored at the clinic were destroyed.

Each embryo represented a future — a family waiting, a life planned, a possibility that no longer exists. The loss of the clinic meant more than the destruction of a building. It erased years of medical effort and removed one of the few pathways to parenthood for many couples in Gaza.

Israel deliberately targeted the maternal health infrastructure of Gaza, making it an unprecedented act in world history. The brutality and hate during the genocide are already evident, as hundreds of thousands of people were martyred.

Births Falling at an Unprecedented Rate

The impact of genocide on reproduction is now visible in Gaza’s birth statistics. Data shows that births in Gaza dropped by 41% in the first half of 2025 compared with 2022.

However, normal demographic shifts do not explain such a sharp decline. It reflects a reality where:

  • Families are displaced repeatedly
  • Healthcare services are severely limited
  • Food shortages and stress affect pregnancy
  • Safety itself is uncertain

When births fall at this scale, it signals more than disruption. It indicates that the conditions necessary for sustaining life are no longer intact.

Pregnancy Under Conditions of Survival

For thousands of women in Gaza, pregnancy has become a daily struggle for survival. Estimates indicate that more than 150,000 pregnant and breastfeeding women have been living under conditions of displacement, food insecurity, and limited medical care. Moreover, many of them lack access to basic prenatal services.

Reports from human rights organisations describe:

  • Malnutrition during pregnancy
  • Lack of clean water
  • Extremely limited access to doctors and medicine

These effects are not secondary but primary as they directly influence maternal health, fetal development, and survival outcomes.

Investigations by Human Rights Watch documented numerous scenes where multiple newborns were forced to share a single incubator. There is an entire strategy of sterilization rooted in colonial history.

Colonizers used forced sterilization as a strategy against the innocent wombs. The Genocide Convention of 1948 explicitly defines measures to stop the birthrate as an act of genocide.

Childbirth Amidst the Genocide

The collapse of Gaza’s healthcare system has transformed childbirth itself. Al-Shifa Hospital and others that once handled routine deliveries are now operating under extreme pressure, or have been damaged or destroyed. Supplies are scarce, electricity is unreliable, and medical staff are overwhelmed.

This is a stark indicator of how far conditions have deteriorated. Childbirth, which requires stability, hygiene, and skilled care, is now taking place in environments where none of those can be found at all.

A Systematic Genocide of a Generation

Numerous international humanitarian organizations, such as Amnesty International, stated that women in Gaza are being denied the basic conditions necessary for life, including reproductive health services.

The continuity of an entire generation of Palestinians is at stake due to these heinous genocidal acts. Reproductive health is not only a medical issue, but it is deeply tied to population stability, family structure, and long-term social continuity.

The destruction of reproductive systems, whether through infrastructure, access, or conditions, has lasting consequences. The intentions of Israel and its allies, including the United States, are absolutely visible. They want to wipe out the word “Palestine” from the face of the earth through every single effort.

Despite the scale of this devastation, the horror remains largely underreported by the Western Media. This silence is actually like taking part in the genocide.

In a nutshell, the ability to sustain life has been severely compromised. Israel has ultimately turned the womb into a battlefield. Specifically in Gaza, the consequences of genocide are no longer confined to the present. They largely extend into the possibility of life itself!

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