Nicholas Merten, cryptocurrency trader and creator of the data board YouTube channel, joined Cointelegraph's Crypto Trade Secrets podcast for an interview with host Benjamin Pirus, discussing a number of topics, including his views on the state of the crypto market. โI think right now we've been going through what can only be seen as a period of consolidation,โ he said when asked about his view of the Bitcoin price (BTC) from January 9, the date of the interview.
Bitcoin traded largely sideways for part of November and most of December. In January, however, the asset rose from less than $17,000 to more than $23,000. Looking back at the Bitcoin price chart shows the asset near the beginning of its rise on January 9, sitting in the range low to mid $17,000.
Merten noted that he likes to see the big picture. โI think cryptocurrencies are going through this massive restructuring period again which I think will be overall good for the space in the long run, but I think people pretty much underestimate how long this could last,โ he explained, adding: โThe damage done by companies like FTX and Celsius, Three Arrows Capital, the whole fiasco with LUNA, will really leave an irreversible scar on the industry, and I think we need to understand not just how that contagion continues to play out. but that is being developed in this small micro space within crypto. And when we really get into the macro perspective, the big picture, we really start to see with inflation, global supply chain issues, that cryptocurrency is not going to be the leading asset class for some time." Throughout 2022, the crypto and blockchain space faced difficult times, watching the collapse of multiple industry players. Industry hedge fund Three Arrows Capital and lending outfit Celsius went bankrupt in 2022. Digital asset exchange giant FTX, crypto project Terra, with its assets LUNA and TerraUSD (UST), and others also went down during the year, causing a ripple effect in the crypto space. โI say this as someone who got into crypto around 2016, 2017, who really rode the wave of the last decade in stocks and crypto,โ Merten continued. โI think we need to understand that the end of that secular bull market where times were good, QE was fresh, a lot of money was pumped into the economy to prop up asset valuations; I think those times are sadly over, and we have to prepare for a cold winter in which we can eventually start looking for some signs of bottoming out." Merten also answered a variety of other questions during the interview. Check out the episode and other Cointelegraph's episodes Crypto Trade Secrets podcast in Cointelegraph Podcast Page, Apple Podcasts, Spotify, Google Podcasts Y Tune in. The views, thoughts, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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