On the other side, when Bitcoin dominance shrinks, people are getting more greedy by investing in more risky alt-coins, dreaming of their chance in next big bull run. Especially for Bitcoin, we think that a rise in Bitcoin dominance is caused by a fear of (and thus a reduction of) too speculative alt-coin investments, since Bitcoin is becoming more and more the safe haven of crypto. The dominance of a coin resembles the market cap share of the whole crypto market. We don’t give those results too much attention, but it was quite useful in the beginning of our studies. Usually, we’re seeing 2,000 - 3,000 votes on each poll, so we do get a picture of the sentiment of a group of crypto investors. Together with (disclaimer: we own this site, too), quite a large public polling platform, we’re conducting weekly crypto polls and ask people how they see the market. A unusual high interaction rate results in a grown public interest in the coin and in our eyes, corresponds to a greedy market behaviour. There, we gather and count posts on various hashtags for each coin (publicly, we show only those for Bitcoin) and check how fast and how many interactions they receive in certain time frames).

While our reddit sentiment analysis is still not in the live index (we’re still experimenting some market-related key words in the text processing algorithm), our twitter analysis is running. Generally, when we see high buying volumes in a positive market on a daily basis, we conclude that the market acts overly greedy / too bullish. Market Momentum/Volume (25%)Īlso, we’re measuring the current volume and market momentum (again in comparison with the last 30/90 day average values) and put those two values together. We argue that an unusual rise in volatility is a sign of a fearful market. drawdowns of bitcoin and compare it with the corresponding average values of the last 30 days and 90 days. We’re measuring the current volatility and max. Each data point is valued the same as the day before in order to visualize a meaningful progress in sentiment change of the crypto market.įirst of all, the current index is for bitcoin only (we offer separate indices for large alt coins soon), because a big part of it is the volatility of the coin price.īut let’s list all the different factors we’re including in the current index: Volatility (25 %) We are gathering data from the five following sources.

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