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
Positives: 37.6 %
|Neutral to Positive, significant rise in positives|
|#BTC- Social Media Mentions||Social Mention||Sentiment 16:1 in favour of positives
With 170 score towards neutral
|Neutral to Positive|
|Fear to Greed Index||Alternative.me||Score 38 – Fear||Neutral to Positive- buying opportunities emerge|
|Fear to Greed Index||CNN||Score- 75- Greed||Positive|
The scenario on the crypto street has turned positive suddenly compared to last week. There fear has reduced and the outlook is more towards buying. The fear which was there last week is slowly creating opportunities and people seem to be taking advantage of it
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 93
3.7 % negative
|20:1 towards Positives
|Neutral to Positive|
|XRP- Ripple||Score 81
|21:1 towards Positives
|Neutral to Positive- Positives have risen significantly|
|BCH- Bitcoin Cash||Score 92
|7:0 towards positives
|Neutral to Positive, fairy flat|
|27:0 towards positives
|Neutral to Positive, positivity rising significantly|
|5:0 towards positives
|Neutral to positive, positivity rising significantly|
XRP’s rise has bought positivity to the whole bunch of altcoins as it has bought to BTC. Looks like cryptocurrencies are gaining attention again and this fresh drive will get in more investors.
Will this sentiment actually pull back the prices? Do let us know your views on the same.
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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.