Abstract

Cryptocurrency offers significant benefits, including transparency and greater financial inclusion. Since its inception in 2009, the market has grown rapidly. However, its extreme volatility has led to recurring "crypto-winter" periods, characterized by prolonged declines in value, often triggered by events such as the TerraUSD de-pegging and the FTX crash in 2022. This study explores the factors contributing to the trough and enlightenment of prices, using the Hype Cycle framework and Bitcoin's value as key benchmarks. Gaining insight into these factors can help investors, financial institutions, and policymakers navigate the cryptocurrency market, develop effective risk management strategies, and foster market stability.

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