Cryptocurrency Market Discussion Report for the First 5 Months of 2022

The cryptocurrency market in the first months of 2022 witnessed significant shifts due to the impact of political events on the global economy. The volatile fluctuations in cryptocurrency prices and the rise of NFTs became topics attracting over 1.5 million discussions across social media platforms.

Join Kompa to explore in detail the topics and discussion trends surrounding the cryptocurrency market with data collected and analyzed by Social Listening:

1. Facebook remains the largest source of discussion, far outpacing other platforms

Facebook is the largest source of discussion

More than 30% of discussions are concentrated in Facebook groups, revolving around the volatility and continuous bottoming out of Bitcoin and other cryptocurrencies.

Nearly 25% of discussions took place on Facebook Pages regarding the powerful impact of the Russia-Ukraine crisis—the cause leading to Bitcoin continuously hitting new lows.

While YouTube accounted for only 4% of discussions in 2021, this rate increased to over 24% in 2022. Beyond Bitcoin trading methods, creating digital wallets, and basic investment knowledge, YouTube discussions also revolved around the topic: "What should investors do in the current volatile situation?". Notable YouTube channels with high views and discussions include: Nguyễn Hữu Trí, Đầu tư cùng Nhân, Simon Cường Nguyễn, and Kiến Thức Crypto.

2. The future of Bitcoin – the world's largest cryptocurrency attracts more than 1/3 of total discussions

Total discussions regarding the future of Bitcoin

Under the influence of the war as well as US interest rate hike policies, Bitcoin continuously hit new lows in the first 5 months of 2022. This event caused Bitcoin to reach nearly 400,000 discussions, making it the most discussed cryptocurrency.

As more countries increasingly permit the use of the Binance exchange, Binance Coin entered the top 10 coins by market capitalization, garnering over 300,000 discussions.

Ethereum ranked third on the list with nearly 200,000 discussions due to a sharp price drop at the end of February this year. The cause of this decline stemmed from the Russian invasion of Ukraine.

3. The ups and downs of Cryptocurrency in the first 5 months of 2022

At the end of January, Bitcoin regained recovery momentum, rising from a bottom of $32,900 back to the $45,000 range, attracting 6,164 discussions.

From December 2 to the end of February,tensions in Ukraine and Russia led to widespread sell-off trends across financial markets due to fears of high inflation. Subsequently, Bitcoin prices plummeted when Russian President Vladimir Putin announced the start of a "special military operation" in Ukraine.

When tensions between Russia and Ukraine peaked in early March, Bitcoin prices rose by more than 15%. On March 22, the value of Bitcoin reached its highest level in 3 weeks (over 26% compared to Feb 24), pulling the value of several other cryptocurrencies up as well.

By early May, Bitcoin unexpectedly broke below $34,000—its deepest drop since 2020. The prices of the Luna token and Terra's stablecoin UST unexpectedly crashed, dropping nearly 100%, causing many investors to lose everything.

The wave of investor rejuvenation

The wave of investor rejuvenation

The next generations of investors, Gen X (1965-1979) and Gen Y (1980-1994), are investing heavily in the crypto market. The main reason is that these two generations have a need to accumulate wealth for the future, but with a mindset of not wanting to invest through traditional media, preferring instead to earn money based on their own knowledge.

However, the market is gradually rejuvenating with the entry of Gen Z investors. This group easily accesses market information and has relatively high investment and accumulation needs.

4. Drivers and barriers to the development of the cryptocurrency market

Drivers and barriers

Through analyzing investor discussions, Kompa found that the cryptocurrency market is driven by many factors, most notably:

• National legalization(accounting for 22.4% of discussions)

• FOMO – Fear of missing out(accounting for 15% of discussions)

• Development potential(accounting for 6.71% of discussions)

Alongside the drivers, there are also many barriers to the market:

• Legalization in Vietnam (accounting for 35.6% of discussions)

• Multi-level marketing, scams (accounting for 34.6% of investor interest)

• Market susceptibility to manipulation(accounting for 25.5% of mentions)

• The above is some information extracted from the "Cryptocurrency Market Discussion Report from a Social Listening Perspective" conducted by Kompa in the first 5 months of 2022.

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