Maximum Euphoria of the 2022

After a few tough months for the market, it seems that joy is back and the market paints green. We have recovered a feeling of euphoria that we haven’t seen in months.

To have an idea, here we show a comparison of the last three months market sentiment evolution.

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More impressive is the evolution we’ve seen in the weekly sentiment, marked by a historical data of euphoria at 80 points not seen this 2022!!

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The joy of BTC at 47k and ETH at 3.3k, but we have to take perspective, we are still 30% below its ATH (All time high) reached 5 months ago (November 10, 2021).

We should remember that our indicator is a pure sentiment indicator, it does not take any volume, futures, … only the real-time opinion of thousands of conversations. And it should be understood as this. The psychological propensity of euphoria or panic of a huge amount of members of the crypto community.

Ronin hacks affects Axie

Thanks to our trader Sergio Domínguez and his technical and sentiment analysis of the crypto market in real time, we have started to publish some of the alerts that we analyze at our Twitter account. Follow us here to see some of those alert analysis:

In this case, the alert is from Axie, where the social metrics skyrocket but the AI algorithm warned us about a strong fear and panic component of 79 points!! That was due to the Ronin Hack. Price dropped 10%.

The US yield curve is about to invert!!

We don’t want to be too technical, but basically, this curve (GT2-GOV VS GT10-GOV) is used by many analysts as a warning of a possible recession. Nothing is certain at 100% in economy. But it is true that for the last 50 years, this curve has ALWAYS been inverted in each and everyone of the recessions. 

Nobody knows when will happen. Sometimes it took months, other quarters (4-5 quarters?). The reality is that the stock market usually reached its maximum before entering a recession. And it’s also true that we can see significant increases in the stock market too before this happens. 

The key here is to know how this can affect the crypto market. A recession is bad, without any doubt, but the intrinsic virtues of the crypto market can make it the perfect refugee for investors, an oasis in the desert. Not for all the cryptos, not for the projects, not for all the value propositions, but those investors who are able to survive, will be in a great position for the next leap. 

The scarcity of supply (in the last 2 years 4% of BTC have been created VS 40% of total dollars that exists in the market), the accumulation of whales and the movements of institutional investors generate optimism

This week, we’ve seen the big impact on BTC price of relative small purchase movements (Terra, Microestrategy, …). Just compare thos purchases with the the 2 Trillion dollars market cap.

Yours in crypto!!