Crypto Twitter Commentary Series #4 - 19/12/2022
Most people have day jobs and don’t have time to track every event that is happening about crypto. But being updated on everything that is going on in the industry is one step forward to be informed and better prepared.
It is part of my job as a trader to keep track of everything that is happening in the crypto space, and where best to do that? Crypto Twitter!
In this series I want to make a summary of the data and major events happening on crypto twitter every day. The goal for me is to keep a daily log of what is happening in the crypto space and why not share it also? Let’s begin.
Let’s look at the top individual content for the day on Crypto Twitter:
Binance announced that they won the bid to acquire voyager assets. Voyager was a crypto exchange that also went bankrupt early this year. With this purchase, according to Coindesk, Binance bid aims to return crypto to customers in kind. This is very good news for customers that might have lost their funds with the exchange.
We also got news that the senate banking chairman is asking the SEC to ban crypto in the US as he claims that it is a national security threat.
GCR makes an interesting point here. People might try to rotate their under-performing bags into assets that are more robust, with a larger track record, and that have not crashed as much. There’s tons of assets that were considered to be the next big thing that are now down over 90%. Will people actually realize those losses and convert those remaining bags into other assets? We don’t know we have to wait and see.
Binance released this new cool feature where you can see coins performance on a heatmap. I like to have something visually clear in order to scan the market. Sometimes we can get lost in numbers and a good visual is all it takes to look at the market quicker and more efficiently.
This is interesting data and directly correlates to the bankruptcy of all the exchanges this year. People lose trust in centralized exchanges and either transfer their funds to their bank accounts or to their wallets. Personally I have the large majority of my funds in a cold wallet. Even though I actively use Binance, my systems have not been trading most of this year due to market conditions, and so it makes little sense for me to have money on CEX’s at the moment.
This is another bad take from Peter in regards to crypto. We are not asking for regulators to save the industry but rather to provide more clarity to these companies that operate with crypto. People like Peter still can’t understand the difference between decentralized crypto assets and centralized crypto exchanges and companies. They conflate the both to pass on their biased perspective on the matter.
Now let’s look at the data of the top influential accounts on Crypto Twitter:
I’ve upgraded the tracking of mentions about Bitcoin and Ethereum for these top twitter accounts. We can clearly see that Bitcoin still takes hold of the large majority of the conversation in comparison to Ethereum.
Looking at the sentiment we can clearly see that negative sentiment is starting to grow in comparison to positive sentiment. That is natural as the market is trending down people tend to be more negative on social media. You can see that the short-term moving averages of sentiment are trending down below the longer-term moving averages. This shows us that we have sustained negative sentiment on twitter. I’ll keep track of this sentiment going forward.