Nicholas Merten of DataDash predicts a ‘cold winter’ for the crypto market

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Nicholas Merten, a cryp­to trad­er and the cre­ator of the DataDash YouTube chan­nel, joined Cointelegraph’s Cryp­to Trad­ing Secrets pod­cast for an inter­view with host Ben­jamin Pirus, dis­cussing a num­ber of top­ics, includ­ing his opin­ions on the state of the cryp­to mar­ket. “I think that right now, we’ve been going through what can only be seen as a peri­od of con­sol­i­da­tion,” he said when asked about his thoughts on the price of Bit­coin (BTC) as of Jan. 9, the date of the interview.

Bit­coin large­ly trad­ed side­ways for part of Novem­ber and most of Decem­ber. Jan­u­ary, how­ev­er, has seen the asset rise from below $17,000 to above $23,000. Look­ing back at Bitcoin’s price chart shows the asset near the begin­ning of its ascent on Jan. 9, sit­ting in the low- to mid-$17,000 range. 

Merten not­ed that he likes to look at the big pic­ture. “I think cryp­to is going through again this peri­od of mas­sive restruc­tur­ing that I think is going to be over­all good for the space long term, but I think peo­ple quite under­es­ti­mate just how long this could real­ly play out,” he explained, adding:

“The dam­age that was 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 that con­ta­gion con­tin­ues to play out but that it’s play­ing out in this lit­tle micro space with­in cryp­to. And when we real­ly step out into the macro per­spec­tive, the big-pic­ture view, we real­ly start to see with infla­tion, glob­al sup­ply chain issues, that cryp­to is not going to be the lead­ing asset class for some time.”

Through­out 2022, the cryp­to and blockchain space faced dif­fi­cult times, see­ing the col­lapse of mul­ti­ple indus­try play­ers. Indus­try hedge fund Three Arrows Cap­i­tal and lend­ing out­fit 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 dur­ing the year, caus­ing rip­ple effects in the cryp­to space.

“I say that as some­one who got into cryp­to around 2016, 2017, who real­ly rode the wave of the last decade in stocks and cryp­to,” Merten con­tin­ued. “I think we need to under­stand that the end of that sec­u­lar bull mar­ket where times were good, quan­ti­ta­tive eas­ing was fresh, there was lots of mon­ey being inject­ed into the econ­o­my prop­ping up asset eval­u­a­tions — I think those times are unfor­tu­nate­ly over, and we need to pre­pare for a cold win­ter where even­tu­al­ly we can start to look for some signs on bottoming.”

Merten also answered an array of oth­er ques­tions dur­ing the inter­view. Check out the episode and oth­er episodes from Cointelegraph’s Cryp­to Trad­ing Secrets pod­cast on Cointelegraph’s pod­cast page, Apple Pod­casts, Spo­ti­fy, Google Pod­casts and TuneIn.

The views, thoughts and opin­ions expressed here are the authors’ alone and do not nec­es­sar­i­ly reflect or rep­re­sent the views and opin­ions of Cointelegraph. 

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