Social Narratives Affecting the Crypto Market This Year

The crypto market responds to news, trends, and community discussions on various topics. Substantial knowledge of these narratives gives investors an edge

Investors in the crypto market closely follow the latest news, trends, and community discussions to make informed decisions and protect their portfolios. Having a deep understanding of these narratives can give traders an edge in navigating the upcoming volatility in the digital asset space.

Crypto research and intelligence platform Santiment recently highlighted some narratives that have shaped the market in 2023. According to the firm, the impact of these social narratives on crypto prices is still unfolding, and traders who understand the cyclical nature of these narratives will be better equipped to handle it.

Here's a look at some social narratives that have affected crypto, according to Santiment.

Crypto Whales Narrative Impacts the Market

One key topic that has had a substantial impact within the community is the narrative around crypto whales (large holders of bitcoin and other top cryptocurrencies). According to Santiment, the influence of whales on crypto prices has been a major talking point, especially during times of price declines.

The firm noted that there have been massive concerns in the crypto community regarding the ability of whales to manipulate prices when the market tanks, but this cohort of investors tends to be largely ignored when prices start to rally.

Recently, there have been heated discussions on platforms like X regarding community members’ fears of market manipulation among whales when prices tank. However, this cohort of investors is largely ignored when prices start to rally.

Regulatory Concerns Around BTC Mining and TON Narrative

Another hot topic that has been affecting crypto prices is the regulatory narrative around bitcoin (BTC) mining and its environmental impact. These conversations have raised questions about the long-term sustainability of crypto and the potential influence of global scrutiny on mining profitability.

Despite the negative sentiment and fears of strict regulations concerning these operations, BTC's price has shown resilience. However, the asset remains sensitive to any price fluctuations resulting from changes in mining policy.

Furthermore, The Open Network (TON) has been a subject of many discussions, especially with the recent news of the institutional investment and the arrest of Pavel Durov, the founder of Telegram, a social media platform linked to the blockchain.

As institutional interest in TON continues to grow, Durov's arrest raises concerns about Telegram's role in the crypto space diminishing, considering the platform on-boarded millions of new users through its in-app play-to-earn crypto games. While the market has adjusted to the dip that followed the news of Durov's arrest, there are fears of further declines upon government interventions and possible sanctions on the platform's activities.

NFT Market Narrative and Meme Coins Hype

It is also worth mentioning the non-fungible token (NFT) sector, which has been on edge ever since the United States Securities and Exchange Commission served the leading marketplace, OpenSea, with a Wells Notice. Throughout the year, there have been continuous conversations among crypto traders regarding the possibility of stricter regulations for the NFT sector.

In addition to the trending social narratives are discussions around artificial intelligence-driven blockchains and smart contracts and the ever-present meme coin hype, which has been amplified by the creation of new marketplaces like Pump.Fun, SunPump, and EtherVista.

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