Cryptocurrencies are in a very difficult territory where no fundamental or technical indicators is actually affecting the price than the sentiment of the community. Every news article or a social mention is actually driving the trend and direction of where the prices are heading to. Although most of the sentiment is derived from the sentiment of the Bitcoin- the largest cryptocurrency, still some altcoins have their specific pros and cons that change their variance from that of Bitcoin. Let’s look at the few indicators that are used widely across to determine the sentiment.
Bitcoin Sentimental Analysis
As mentioned it’s the largest coin in the market that decides most of the trend for the crypto markets is necessary to understand that sentiment it garners among the community. A lot of news flow and sell off has dampened the short term sentiment but yes there are some long-term positives which make Bitcoin an interesting study. An analysis of its social mention and greed and fear index would give us a clear idea of what is happening
|Analysis Type||Tool||Analysis- Score||Sentiment|
|#BTC – Hashtag Analysis||Keyhole||Score: 87
|Neutral to Positive- Neutrals rise|
|#BTC- Social Media Mentions||Social Mention||Sentiment 2:1 in favor of positives
With 55 scores towards neutral
|Fear to Greed Index||Alternative.me||Score 35–Fear||Negative to Neutral|
|Fear to Greed Index||CNN Money||Score 52 -Neutral||Neutral|
Bitcoin has been a stable zone for over a couple of weeks. The stability somewhat assures that Bitcoin will not be breaching USD 3000 anytime sooner. The street is pretty undecided and looks to remain neutral on the prices. The fear and greed indexes have the first time, over past 2 months, have come in a neutral zone after being in the extreme fear territory.
Altcoin Sentimental Analysis
Fear and Greed index is only available for BTC as not may altcoins have all components required to calculate it
|Altcoin||Keyhole # analysis||Social Mention||Sentiment|
|ETH- Ethereum||Score – 87
|17:0 towards Positives
|Neutral to Positive- Dipping Positives|
|XRP- Ripple||Score 87
|9:1 towards Positives
|Neutral to Positive, Positive Rising|
|BCH- Bitcoin Cash||Score 80
27.6 % Positive
|5:0 towards positives
|Neutral to Positive- Neutrality rising|
|14:0 towards positives
|Neutral to Positive-
Neutrals moving to positives
|3:1 towards positives
|Neutral to Positive, Positive rises sharply|
Well, the Ethereum Constantinople Upgrade was delayed and that led to the sentiment dampness for Ethereum. While for most altcoins things were neutral, some positivity was noted in altcoins like XRP and XLM indicating their positive inroads to the financial industry.
Will this sentiment actually pull back the prices? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.