DataDash’s Nicholas Merten Predicts a “Cold Winter” for the Crypto Market

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Nicholas Merten, a crypto trader and creator of YouTube channel DataDash, joined the Cointelegraphs Crypto Trading Secrets podcast for an interview with host Benjamin Pirus, discussing a number of topics, including his views on the state of the crypto market. I think right now we are going through what can only be considered a period of consolidation, he said when asked his thoughts on the price of Bitcoin (BTC) as of January 9. , date of the interview.

Bitcoin traded largely sideways for part of November and most of December. January, however, saw the asset rise from under $17,000 to over $23,000. A look back at the Bitcoin price chart shows that the asset started its ascent on January 9, sitting in the low to mid range of $17,000.

Merten noted that he likes to look at the bigger picture. I think crypto is going through this period of massive restructuring again which I think will be overall good for the space in the long run, but I think people are pretty underestimating how long this could really last, he said. he explained, adding:

The damage done by companies like FTX and Celsius, Three Arrows Capital, the whole fiasco with LUNA, is really going to leave an irreversible scar on the industry, and I think we need to understand not only how this contagion continues to unfold but that it plays out in this little micro-space within crypto. And when we really get into the macro perspective, the bigger picture, we really start to see with the inflation, the global supply chain issues, that crypto isn’t going to be the main asset class for a while time.

Throughout 2022, the crypto and blockchain space has seen tough times, seeing the collapse of several industry players. Industry hedge fund Three Arrows Capital and loan company Celsius both went bankrupt in 2022. Digital asset exchange giant FTX, crypto project Terra with its LUNA and TerraUSD (UST) assets and others also fell over the year, causing ripple effects in the crypto space.

I’m saying as someone who got into crypto around 2016, 2017, who really rode the wave of the last decade in stocks and crypto, Merten went on. I think we need to understand that the end of this secular bull market where times were good, quantitative easing was fresh, there was a lot of money pumped into the economy to support asset valuations. I think those times are sadly over, and we have to prepare for a cold winter where we can eventually start looking for signs of bottoming out.

Merten also answered a series of other questions during the interview. Check out the episode and other episodes of the Cointelegraphs Crypto Trading Secrets podcast on the Cointelegraphs podcast page, Apple Podcasts, Spotify, Google Podcasts and TuneIn.

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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