2022 was a roller-coaster ride for the crypto market. Last year, investors witnessed the boom and decline of STEPN, as well as the death spiral of UST and the Merge, a historical event on Ethereum. Soon afterward, FTX went bust. For crypto investors, this sudden black swan event added insult to injury. Just as we thought that the worst is over and things will turn around for crypto in the new year, DCG’s outstanding debts were revealed soon after 2023 kicked off, and the crypto giant has now become a grenade with the pin taken out.
That being said, the crisis also presented opportunities. Last year, investors had a number of great chances to buy the dip. At the same time, as the bear market deepened, many indexes became invalid, while some have been proven useful. Today, let’s go through some of my favorite indexes in 2022.
1. U.S. CPI & PCE
Before going into the specifics, we must first make it clear that all investors are bound to be influenced by the macroscopic environment, and the financial action taken by the U.S. represents one of the most significant factors affecting the global economy. Further, CPI and PCE directly reflect the investor sentiment in macro financial markets and the future movements of the Fed concerning interest hikes. Of course, in addition to CPI and PCE, we should also track market forecasts to predict the macro market trends and promptly adjust our investment strategies.
If you focus on the long-term prospects of your investments, then you must be able to look ahead into the future, which will allow you to make the right decisions now.
2. Nasdaq 100
If you compare Nasdaq 100 to Bitcoin’s price trend in 2022, you’ll notice that the curves of the two share remarkable similarities. Although their correlation gradually diminished in the latter half of the year, they resembled each other when it comes to major market corrections. This is the case because crypto remains in its infancy and is a small sector in terms of market cap, which means that it cannot escape from the impact of the U.S. stock market. In addition, after institutional investors made a fortune in the last bull market, the capital structure of the whole crypto market is increasingly similar to that of Nasdaq 100, meaning that the two will become more correlated in the future.
Yet it is also clear that the crypto market responded to fluctuations more violently than Nasdaq 100, which indicates that most crypto investments are made by speculators. Furthermore, in the crypto market, investor sentiment is subject to significant changes, with lasting impacts on prices.
In addition to macro indexes, there are also several useful indexes focusing on the crypto market itself. Let’s take a look.
1. Futures Margin Rates & Long/Short Ratio
Combining the two statistics allows us to track the real long/short ratio of the whales, which provides references for decision-making. Meanwhile, when the margin rate of the same crypto differs across exchanges, we can also earn profits via arbitrage.
2. BTC/ETH: Exchange Netflow
During the current bear market, BTC has remained the №1 crypto in terms of market cap. Meanwhile, ETH has also secured its position as the second-largest crypto. As such, when accessing market movements, we should check out the flows of funds relating to BTC and ETH.
3. Bitcoin Rainbow Chart & Ahr999
If you plan to make long-term investments rather than seeking immediate returns, Bitcoin Rainbow Chart and Ahr999 are great choices. In particular, after the market movements in 2022, the initial version of the Bitcoin Rainbow Chart has become less valid, which triggered the appearance of a new version based on new algorithms: Rainbow Chart V2.
Moreover, if you are a staunch BTC supporter and investor, you must have heard of Ahr999, an index that can help you stay undistracted by market swings and make rational fixed investments. However, Ahr999 could also make you feel anxious in a prolonged crypto bear.
So, these are my favorite indexes in 2022. It should be noted that they are all free, and you can rely on these amazing indexes when making investments. Other than the ones I mentioned, the monthly delivery of BTC and ETH options and detailed DeFi statistics are also useful indicators, which we will not elaborate on in this article.
Having introduced all those indexes, we still need to choose a reliable platform when making investments. CoinEx was my favorite crypto exchange in 2022. Founded in 2017, the exchange is a subsidiary of ViaBTC Group and has never suffered any security breach since its inception.
As a global crypto exchange, CoinEx excels at localization. Available in 15 languages, the exchange has created official SNS channels for users in each market. In terms of products, CoinEx offers smooth, easy operations. Additionally, CoinEx also provides a wide range of premium services, spanning spot trading, futures trading, margin trading, crypto finance, AMM, and CoinEx Dock, to create a user-friendly, secure, and efficient crypto trading environment. Click on the link below to try out CoinEx if you’re interested:
Disclaimer: No investment advice is provided in this article, and all data mentioned herein are for reference only. You should not rely on the information provided herein to make any investment decision, and you will be fully liable for your own investment decisions.
