30 Dec 2022

2022 - Year in review

A year of expensive lessons. This report is both a backward-looking review and a forward-looking assessment of what’s to come.
Year in review 2022
Most notable observations in 2022:
  • BTC ends the year down 65%, seeing its second-worst yearly performance since 2011, only beaten by 2018’s -73%.
  • Binance firmly establishing its dominance in the crypto market, representing 92% of the BTC spot volume, 66% of the crypto perp volume, and 61% of the BTC derivatives volume by the end of 2022.
  • Correlations between BTC and equities have been extremely high throughout the year, with tightening central banks being the leading force behind the falling markets.
  • Stablecoins have vastly increased their market dominance in 2022.
Our core prediction for 2023:While the tightening macro landscape and BTC’s correlated relationship to macro complicate analogies to previous bear markets, we firmly believe that this is an excellent area to build gradual BTC exposure. However, we expect low activity to be the key trend throughout most of 2023, with diminishing trading volumes and volatility in a significantly more boring market than the previous three years. As we advance into the next year, patience and long-term positioning will be key.
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