Territorial turmoil within Capitol Hill regulatory bodies indicates crypto regulation sentiment changes through February 2023.

Follow the below links and decide for yourself what Jan 2023 regulatory announcements will bring for the blockchain industry.

Continuum Summary:

We expect Oct 2022 and Jan 2023 regulations to sweep the blockchain industry, calling everything a security unless the brand can prove it’s not a security, resulting in a chokehold of individual innovators making way for large institutions like JP Morgan, Citadel and even the US Government to launch their own token products that will be promoted as “Safe for US Consumers” in parallel with a negative campaigns towards existing blockchain products as “Not Safe for US Consumers.”

This means a media campaign of negative finger pointing similar to what you see in American election cycles.

Continuum trust #datapoints over policy rhetoric and power plays. Inflation is real.

Fact: Crypto market performance is highly tied to S&P500 performance.

What does that mean? If the American economy is in the toilet, the global crypto market is also in the toilet. Continuum has not seen the crypto market decouple from the global economic engine for the 5 years we have been tracking.

Fact: Crypto market performance is highly susceptible to negative sentiment

What does that mean? Average Americans are not likely to make crypto purchases or enter as a new user when media says negative things about blockchain.

Fact: Global Economic Engine changes can be expected for the next 18-24 months

What does that mean? FED interest rates tapering means less free money for institutional investors, recession impact and the printing of $10 trillion dollars during covid lockdown means we are in a new market regime the world has never seen in all of human history. A bear market usually takes 270+ days to recover. An official American recession may look worse than the 2008 crash that inspired Satoshi Nakamoto to create Bitcoin in the first place. Wall Street factors are complicated but they’ve played with free money for the past 5 years we’ve been tracking, now they’re not. Continuum expects a significant impact on Energy/Oil prices, Agricultural and Precious Metals commodities, Institutional and Consumer Credit as well as Real Estate markets when Interest Rates increase. Correlations to individual cryptos can be seen, but they are still at the mercy of the Global Economic Engine. if S&P500 is down, you can expect crypto markets to be down.

Five Crypto Sentiment Factors:

1. Overall sentiment usually follows the guy with the biggest budget

2. Negative crypto news usually stifles the crypto market prices starting with BTC and more prominently negative across Alts

3. Average Americans still don’t understand the Global Economic Engine and can’t do their own research, so media hype in either direction results in sentiment like FUD, FOMO and bad mouthing of the crypto economy

4. Average Americans still don’t understand the crypto market factors, the largest factor is sentiment

5. Positive sentiment is usually driven by institutional investors buying crypto which lends credibility and feelings of longevity, if institutional is belt-tightening and no buying, you usually see negative sentiment take over the crypto space