Crypto Market Sentiment is the Lowest It’s Been in 6 Months
It wouldn’t be logical to expect the market sentiment to have gone up given the week crypto market has had. Per crypto market sentiment analysis service Omenics, following the market crash on February 13, the combined moving average 7-day market sentiment measure, sentscore, for the top 10 coins by market capitalization has dropped this week from last Monday’s 5.08 to 4.21/10 – the lowest it’s been since September 30, 2019, when a similar drop had occurred.
Even without the market crash, a the current redness of the coins was predicted by the poor 24-hour performance last Monday. The coins are not only entirely in red, and not only is none of them in the positive zone any longer, but none have a sentscore above 4.5 and two are in the negative zone: XRP and Bitcoin Cash (BCH). Meanwhile, Bitcoin (BTC) has got just 4.3 this time, a much lower grade than we’re used to seeing.
To put this into perspective, let’s just remember that on February 17, we reported the highest recorded sentscore since starting this series: 6.23/10, with six coins in the positive zone.
That’s not all the bad news: the combined average market sentiment for the top 10 coins in the last 24 hours has dropped into the negative zone, now standing at 3.96, with four individual coins in the negative tone as well.
Sentiment change among the top 10 coins in the past week*:
Interpreting the sentscore’s scale:
– 0 to 2.5: very negative
– 2 to 3.9: somewhat negative zone
– 4 to 5.9: neutral zone
– 6 to 7.49: somewhat positive zone
– 7.5 to 10: very positive
The winners on the all-red list are those who’ve dropped the least: below a drop of 10%, we find Tether (USDT), EOS (EOS), and Binance Coin (BNB), respectively. Tether’s highest scores are 5.6 in news and 5.1 in technicals, while it has a somewhat lower 4.8 score in buzz and 4.6 in social, but also a negative score of 3.4 in fundamentals. Meanwhile, though EOS has a positive score of 6.3 in news and neutral 4 in social, it’s also got three negative scores, making its lowest scores 3.4 in buzz, 3 in fundamentals, and 2.4 in technicals. BNB’s highest scores are in news and fundamentals (5.7 and 5.4, respectively), while it’s lowest are in social, buzz, and technicals (4, 3.6, and 2.5, respectively).
Daily Bitcoin sentscore change in the past month:
The losers are aplenty. Still, the two that have dropped the most – above 20% – are the world’s first two coins: Bitcoin and Ethereum (ETH). Furthermore, Chainlink (LINK), which spent two weeks in the 10th place, has been pushed out by Stellar. Unlike many other coins, BTC’s strongest sentscore is in fundamentals, with 8.5/10. But the rest of its scores are way down, in an untypical poor performance by this coin. It has the neutral 4.7 in buzz, but also three negative scores: 3.3 in social, 2.5 in news, and 2.4 in technicals. The world’s second in command, ETH, also records poor scores: 5.3 in fundamental as its highest score, followed by 3.9 in social, 3.4 in news, 3.2 in buzz, and 3.1 in technicals. Lastly, now on the 13th spot, LINK has got 5.9 in buzz, as well as 4.5 in social and 4.1 in technicals, but also 3.9 in fundamentals and 3 in news.
Outside the top 10 list, observing the other 29 coins on Omenic’s list in the last seven days, the situation is not better. Only one coin, Nano (NANO), has the sentscore of 5. For the rest, the highest score is 4.7 and the lowest 2.9.
* – Methodology:
Omenics measures the market sentiment by calculating the sentscore, which aggregates the sentiment from news, social media, technical analysis, viral trends, and coin fundamentals-based upon their proprietary algorithms.
As their website explains, “Omenics aggregates trending news articles and viral social media posts into an all-in-one data platform, where you can also analyze content sentiment,” later adding, “Omenics combines the 2 sentiment indicators from news and social media with 3 additional verticals for technical analysis, coin fundamentals, and buzz, resulting in the sentscore which reports a general outlook for each coin.” For now, they are rating 39 cryptocurrencies.