The collapse of FTX has left the industry bracing for a bear market like the dot-com crash of 2000.
The fall of Sam Bankman-Fried's exchange will make it difficult for digital assets to win back investor confidence.
James Butterfill, head of research for Europe's largestcryptocurrencies investor, said that this will set their initiatives back.
The ongoing "Crypto winter" has been accelerated by FTX's bankruptcy, with the price of bitcoin hitting a two-year low last week.
There could be more pain to come.
As internet usage increased, investors piled into any stock with the name ".com" in it's name.
The tech bubble burst after the Federal Reserve raised interest rates.
By October 2002, the share prices of tech stocks, including Amazon and MicroStrategy, had plummeted.
Pets.com went out of business in 2000 when its shares were worth just 19 cents nine months after listing.
Last year, investors piled into Cryptocurrencies before the Fed tightened its monetary policy.
Since hitting a record close to $69,000 last November, there has been a sharp decline in the price of the digital currency.
"This isn't that different to the dot-com crash," Dan Kemp said. People tried to get value from the internet by buying shares in Pets.com.
Tech stocks were able to win over investors again.
It took Amazon 10 years to regain its peak share price after the dot-com crash.
Analysts say that Cryptocurrencies face a similar battle to regain trust.
There is no sign of a thaw in the winter that has lasted for more than two years. Consumer confidence has been damaged by the revelations of the wrongdoing of the exchanges.
According to Butterfill, the FTX's bankruptcy has slashed about $9,000 from the price of bitcoins, which could benefit from speculation that the Fed will ease up on tightening from December.
He told Insider thatBitcoin could trade at $25,000 without this. People are upset, and sceptics feel like they're in control.
Charlie Munger and Nouriel Roubini are two of the sceptics who took FTX's bankruptcy as an opportunity to slamcryptocurrencies.
Stephen Diehl, a software engineer and author of "Popping the Crypt Bubble", told Insider that comparisons to the dot-com crash favor digital assets because they imply the space will one day contain companies like Amazon or Google that deliver value to their shareholders.
He said that people need to buy food for their dogs at Pets.com. There's a mania completely detached from the real economy in thecryptocurrencies.
It's not clear whether cryptocurrencies can bounce back as they did 20 years ago.
The industry will struggle to shed its association with FTX and Sam Bankman-Fried in order to win back investors' trust.
According to Nouriel Roubini, CZ is a walking time bomb.
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