Bitcoin Is A “Good Indicator” Of Retail Sentiment, Says Veteran Analyst

Varinder Singh
April 22, 2022 Updated April 27, 2022
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"Bitcoin Is A Good Indicator For Retail Trading Sentiment"- JJ Kinahan

Bitcoin can be considered as a good indicator of retail sentiment, although it isn’t the best, said JJ Kinahan, the chief market strategist at Tastyworks. Kinahan noted a recent decline in retail sentiment, which had likely seen several popular meme stocks lag Bitcoin.

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Bitcoin Is a Good Indicator For Retail Sentiment: JJ Kinahan

During a discussion on CNBC’s “Squawk Box” on April 22, JJ Kinahan agreed that Bitcoin has been a good retail sentiment indicator in many ways as people believed it to be. Crypto adoption is growing among people in the U.S. as many holds Bitcoin and other cryptocurrencies in their portfolios.

“Many of us thought for a long time that Bitcoin sort of was going to be the ultimate retail indicator,” says JJ Kinahan. “It shows there is becoming more acceptance of digital currencies in general…it is a good indicator, maybe not the best indicator of retail sentiment.”

JJ Kinahan believes meme stocks such as GameStop, Robinhood, and AMC Entertainment have more sustainable long-term volumes now, despite the decline in stock prices. Moreover, the confidence of retail investors has faded in meme stocks with the opening of offices, businesses, and other things.

In addition, the Federal Reserve’s reaction to the rising inflation rate and expectations of investors on meme stocks will be key for future growth prospects. With Bitcoin moving in correlation with Nasdaq, it will also impact retail sentiment for meme stocks. Moreover, Bitcoin and other cryptocurrencies have performed better than meme stocks.

He believes people are still participating, but not participating at the levels they were in 2021.

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Performance of Bitcoin and Meme Stocks

Meme stocks such as GameStop, Robinhood, and AMC Entertainment skyrocketed in 2021 as trading volumes shot to record levels. However, the prices have now dropped as retail investors are not participating much. GameStop, Robinhood, and AMC stock prices are currently trading at $142, $10.58, and $17, respectively.

Likewise, Bitcoin also dropped from its higher levels in November 2021, with the current price trading near $40,000 levels. However, Bitcoin (BTC) and other cryptocurrencies have performed better than meme stocks in year-to-date terms.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.