Crypto Market Sentiment Slips; Binance Coin Takes The Medal Again
In the second-to-last week of 2020, the market had another rally and bitcoin (BTC) hit new all-time highs, but the market sentiment dropped. The combined moving 7-day average crypto market sentiment score (sentscore) for the top 10 coins fell from the positive 6 it managed to climb to in the week before to 5.43 - close to where it stood two weeks ago, as seen in data provided by crypto market sentiment analysis service Omenics.
In the past seven days all but one coin went red. Two coins had particularly heavy, two-digit drops, these being XRP with a fall of nearly 20%, and tether (USDT) with -14.5%. The least to decrease is litecoin (LTC)'s sentscore, with 0.1%, followed by the newest entrant to this top 10 list - USD coin (USDC) and its 0.7% drop. The remaining coins' sentscores decreased between 3.3% and 8.8%.
That one green coin we see today is the last week's winner, binance coin (BNB), which makes it the winner of this week as well. Its sentscore went up 3%.
Meanwhile, though four coins were in the positive zone last time, this time it's yet again only bitcoin and ethereum (ETH) there. Also, while having no coins below the grade of 5 last time, four have landed there over the course of the past week.
Sentiment change among the top 10 coins*:
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 situation is quite similar in the last 24 hours as well, though with a larger drop. The combined 24h average sentscore for the top 10 coins dropped from the positive 6.3 to the neutral 5.56 - lower than it was even two weeks ago. When it comes to the individual sentscores, bitcoin, ethereum, and litecoin are the only ones in the positive zone. BNB, cardano (ADA), and polkadot (DOT) have scores between 5.5 and 5.9, while tether, XRP, USDC, and chainlink (LINK) stand between 4.2 and 4.6. Therefore, the picture is quite different from the greenery seen a week ago. Nonetheless, the good news for the majority of the coins is that, despite their lower performance compared to last Monday, they are actually up in the last 24 hours. LINK is up the most, 11%, and is the only one with a double-digit rise. DOT and USDC are red, however, with -2.8% and -1%, respectively.
Daily Bitcoin sentscore change in the past month:
Now turning our attention outside of the top 10 list, and to the other 26 coins tracked by Omenics, we find the vast majority of them in red over the past week. REN, crypto.com coin (CRO), and synthetix (SNX) are the only ones to have gone up, and arguably not by a lot - between 1% and 3.3%. Furthermore, only SNX remains in the positive zone, its score climbing from 6.2 to 6.3 over the week. Half of the remaining coins have scores above 5, while the other half is below 5, with some coins standing on the verge of the negative zone.
* - 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 36 cryptocurrencies.