2022 is coming to an end, and our staff at NewsBTC decided to launch this Crypto Holiday Special to provide some perspective on the crypto industry. We will talk with multiple guests to understand this year’s highs and lows for crypto.
In the spirit of Charles Dicken’s classic, “A Christmas Carol,” we’ll look into crypto from different angles, look at its possible trajectory for 2023 and find common ground amongst these different views of an industry that might support the future of finances.
Over the last week, we spoke with institutions about their perception of 2022 and their outlook for the coming months. We’ll begin our experts round with Material Indicators, a market data, and analytics firm dedicated to building trading tools for the nascent sector.
Material Indicators: “While we have yet to see tradfi (Traditional Finances) price in earnings contraction (~Q1’23) for the last leg down, we are already close to bottoming sentiment-wise.”
Material Indicators and their team of analyst gauge market sentiment and liquidity and try to read between the lines of what big players are doing to provide a clear view, absent of noise, about its conditions and possible direction. This is what they told us:
Q: What’s the most significant difference for the crypto market today compared to Christmas 2021? Beyond the price of Bitcoin, Ethereum, and others, what changed from that moment of euphoria to today’s perpetual fear? Has there been a decline in adoption and liquidity? Are fundamentals still valid?
A: The difference is striking! Since the FTX blowup, the influx of new people to Crypto Twitter has been reduced to a trickle. Salty Youtubers will now advise you to sell your remaining coins to avoid a total loss. Telegram communities have been shrinking. Big accounts who’ve been telling their followers to buy have either quit or rebranded. While we have yet to see tradfi (Traditional Finances) price in earnings contraction (~Q1’23) for the last leg down, we are already close to bottoming sentiment-wise.
Q: What are the dominant narratives driving this change in market conditions? And what should be the narrative today? What are most people overlooking? We saw a major crypto exchange blowing up, a hedge fund thought to be untouchable, and an ecosystem that promised a financial utopia. Is Crypto still the future of finance, or should the community pursue a new vision?
A: It’s the other way around. Conditions create narratives. Loose…
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