Market analysis: January 2022
“Quant’s” thoughts on January
Quant is a Wall Street term for an analyst focused on statistical and mathematical models. Only the best of the best can call themselves “Quants” and we asked ours what’s his opinion of the last month in cryptosphere.💡
How was last month in the cryptosphere?
2022 did not start well for cryptocurrencies. Bitcoin (and the entire market with it) started the year with a price drop and then a lazy sideways movement. It kept this up until the last week of January. Then it plummeted again to a six-month low, where digital assets finally made a minor run.
It can be chalked up to the generally poor atmosphere on the American stock markets, which lost around 12.3% in the first three weeks of the year (S&P 500 index). Concerns and uncertainty continued to spread.
All in all, it was one of the more challenging months for our team. Sharp and sudden declines were quickly replaced by periods of prolonged price consolidation, and this pattern was repeated and repeated.
Apart from short-term strategies involving derivative futures products (which take advantage of sudden tumbles and aren’t afraid to realize their profits quickly), trading activities were largely suppressed. But even though the market didn’t offer many interesting opportunities, it did offer a valuable and important lesson we can use to further improve our strategies. 🙂