Geopolitics and Weekly Crypto Sentiment

We have spoken on numerous occasions about the importance of institutional adoption and users adoption as two of the main driving forces in the crypto sector.

A question that many people does is if this entire market can go to zero. For me, this scenario is very unlikely. First, because we are talking about a market of two trillion, it’s too big to fail. Second, because we have already started to see how the crypto sector has emerged as a global geopolitical force.

There is no doubt that this sector is already part of the strategic decision-making tables of governments and institutions. The use in Ukraïna as a currency of exchange, the international sanctions, the CDBC, the executive order by Biden, prime ministers and mayors being paid in crypto, … It’s not an illusion. It’s a reality. Perhaps we are still very far from being a daily use currency, but there is no doubt that there is no world economic organization or government with geostrategy thinking, that does not include a look into Bitcoin. and the crypto economy.

Increases the risk of recession

One of the data to take into account for the crypto world, considering that this first quarter the price of BTC has been influenced by what was happening outside the market itself (FED decisions, war, …), is the recession risk.

One of the metrics to measure this risk is the market sentiment “Consumer Sentiment” (University of Michigan survey) that has collapsed at the minimum of the last 10 years. So yes, there is a clear recession risk.

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Source: Charlie Bilello

How can a recession affect the crypto market?

Nobody knows. As a technology asset with a strong correlation with the Nasdaq, it may be negatively affected. Also as an asset with strong volatility. But the analysis cannot finisj there, it would be necessary to look to the fundamentals. And the fundamentals of the crypto market are very solid, despite the fact that we may see temporary bearish situations in the coming months, its growth potential, its transformative and innovative capacity and its intrinsic characteristics (deflationary) could lead it to the next scenario in which definitively decorrelates from the Nasdaq and takes on its own personality, occupying its own space against the Dollar, the Euro, the Yuan and Gold.

GAMING social metric leads the crypto market

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At Subutai we use categories to analyze market movements that help us understand the underlying movements that are sometimes so hard to see if we only see the chart prices.

In this case, we selected the social metrics of the Top 10 Gaming Cryptos against Top DEFI Cryptos and Top Exchange-Based protocols. As can be clearly seen in the graph, on a social level the last days price increase comes with a strong growth in social conversations around the Gaming category.

Market sentiment

This week we have seen how the sentiment of euphoria in the crypto market has recovered strongly, with interesting spikes for BTC and for other cryptos that have experienced significant increases.

If we analyze the 10-day chart, we see a major spike of euphoria on the 15th at 1pm when BTC was trading at 38.8k, which has pushed BTC up to the current 42.2k.

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It is also interesting how the accumulated euphoria index has gone from 63% to 75% in the last 24 hours, which shows the strong confidence that has been generated in the market due to the upward break that we have witnessed in technical analysis.

Sentiment for BTC last 24h

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Your’s in crypto!!

#AI #NFA #Bitcoin, la evolución de la reserva de valor. #Ethereum, la evolución del dinero. #DeFi, la evolución de la finanzas. #NFT´s, la evolución del arte. #Metaversos, la evolución de internet. #Web 3, la evolución de la propiedad. #DAO Infraestructura, la evolución de las empresas. #Gaming, la evolución de juega y gana a juega y posee.