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: 91
|Neutral to Positive- More negative coming|
|#BTC- Social Media Mentions||Social Mention||Sentiment 10:0 in favor of positives
With 114 scores towards neutral and 10 in favor of Positives
|Neutral to Positive|
|Fear to Greed Index||Alternative.me||Score 28 – Fear||Neutral to Negative|
|Fear to Greed Index||CNN Money||Score 73 -Greed||Neutral to Positive|
All indicators are pointing towards neutrality with a slight positive loop. Both fear and greed index are still pretty divergent again showing that the market is pretty confused. ETF is still a bay although a lot of announcements of various products by Wall Street Banks should bring some relief even though there is a long way for these products to become.
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 – 92
|19:0 towards Positives
|Neutral to Positive- looping to positives|
|XRP- Ripple||Score 74
23.8 % Positive
|12:1 towards Positives
|Neutral to Negative, Neutrality returning as negatives go down|
|BCH- Bitcoin Cash||Score 59
24.7 % Positive
|12:1 towards positives
|Neutral to Positive- Negative shot up sharply|
|12:0 towards positives
|Neutral to Positive|
36.8 % Positive
|2:1 towards positives
|Neutral to Positive, Positive and Negative both rise|
While Bitcoin is neutral, Ethereum after struggling for a week has shot up into positive. This could be because the coin had slipped into the oversold category. XRP also lost some of its negative but those were converted to neutrals than positives. For BCH, EOS and XLM negatives seem to be rising as no major news was built around these coins. In fact, the mentions of these 3 altcoins were seen at a multi-week low.
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.