Market sentiment primarily governs price movements in any market. In the case of traditional scholarships, traders base their decisions on financial reports. When it comes to cryptocurrency, however, the evolution of prices mostly depends on the feelings expressed by social media.
Joshua Frank, CEO of The Tie, recently made a presentation of the findings of the crypto-Twitter analysis. The company carries out research, analysis and portfolio management, as well as trading services. For example, The Tie analysis of the volume of false transactions was instrumental in confirming the Bitwise report.
Recently, the company has explored the effects of social media, especially Twitter, on the price of cryptocurrency. The conclusion of the analysis that included almost 850,000 messages was:
“The only thing that really moves the cryptomonas prices is the wisdom of the crowd or hype on Twitter.”
A recent example was the postponement of the meeting between Justin Sun and Warren Buffet. Tron dropped almost instantly with the spread of information and reached the highest proportions when the Chinese press claimed that Justin could be detained in China for legal reasons.
Positive Market Feelings – Bitcoin is the main topic
The number of tweets related to cryptomonads has increased significantly since the first quarter of 2019. The analysis concluded that on June 26, when Bitcoin reached its peak this year, the number of tweets was over 70,000. This was last seen at the end of 2017:
“Feelings anticipate market movement. Continuous growth is associated with positive feelings. “
concludes the report.
In addition, as Bitcoin dominates, evolution is reproduced in the number of tweets on this subject. Altcoins are mentioned less.
Research findings can be quite depressing for cryptomonas traders because it means that markets are driven largely by hysteria and speculation. The positive aspect is that this year’s market feelings are largely positive.