Quantifying Narratives

Identifying emerging trends early on has been a key to success in crypto investing. The market’s vastness makes it challenging for investors to stay on top of every development across different sectors and strategically time their market rotations. Yet, the prospect of employing quantitative methods instead of relying solely on qualitative events to pinpoint the early stages of a new narrative could significantly boost their advantage. By analyzing the major trends from the last cycle and the initial stages of the current cycle, we can potentially develop a more systematic approach to predict future market movements. This involves studying investment flows, the rise and fall of specific sector narratives, and the changing roles of key players like Bitcoin, Ethereum and Solana.

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