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Crypto Market Sentiment Tries to Recover After Bitfinex's Drama

Crypto Market Sentiment Tries to Recover After Bitfinex's Drama 101
Source: iStock/da-kuk

Despite slightly improving earlier in April, the crypto market sentiment dropped last week to the lowest level it has been in months.

Arguably the biggest reason for this was Tether’s and Bitfinex's drama that came to light last Friday. However, during this past weekend the sentiment improved slightly.

In either case, the current average sentscore, which aggregates the sentiment from various sources, is 4.71, down from last week’s 5.19, according to Omenics (previously - Predicoin,) a crypto market sentiment analysis service. Very few coins saw a rise in their respective score. Litecoin remains unchanged at 5.2.

Looking at the top 10 cryptocurrencies by market capitalization, Bitcoin is still at the top of the list and is the only coin within the somewhat positive zone, according to the SentScore scale. However, it too had a large drop in its score for the third consecutive week, with its current score being 6.1, down from last week’s 6.6.

However, after three consecutive weeks with no coins in the negative range, Tether found itself in the somewhat negative zone which Stellar narrowly escaped, after a rise in their scores last week. Stellar now stands at 4, while Tether is at 3.9, down from the neutral 4.3 and 5.3 respectively.

Sentiment change among the top 10 coins*:
Interpreting the SentScore’s scale:
- 0 to 2.5: very negative
- 2 to 4: somewhat negative zone
- 4 to 6: Neutral zone
- 6 to 7.5: somewhat positive zone
- 7.5 to 10: very positive

Crypto Market Sentiment Tries to Recover After Bitfinex's Drama 102
Source: Omenics, PM 12:45 UTC

Speaking of change over the course of the week, only Cardano rose by 0.1%. Its strongest side is social, with a score of 5.6, followed by news at 5.4, and buzz at 5.2. However, its fundamental and technical have low scores, standing at 3.6 and 3.2 respectively.

Contrary to the last week’s scores, the improvements this time were rare and subtle, but drops significant. Tether saw the largest decline of 11%, closely followed by EOS with -10%, Ethereum -9.9%, and XRP with -9.7%. Other coins on this list follow the same pattern, having their highest scores in news and lowest in technical, but with their social, fundamental, and buzz sitting safely in the neutral zone. EOS has a score of 6.2 in news, but 3.5 in technical. Similarly, Ethereum has high scores of 6.2 in fundamental and 6.1 in news, but 2.3 in technical. Meanwhile, XRP has 4.4 in news and 2.3 in technical.

Bitcoin SentScore:

Crypto Market Sentiment Tries to Recover After Bitfinex's Drama 103
Source: Omenics

Binance Coin had the biggest upward movement earlier in April, which might've been an effect of Binance launching its own blockchain, Binance Chain. This week, however, it dropped by 6.8%.

Out of the 30 coins that are currently tracked by Predicoin, three more saw their score dropping below 4, hence entering the somewhat negative zone: Monero, Dash, and Zcash.
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* - 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 30 cryptocurrencies.

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Read more: How Useful Are Crypto Sentiment Indexes?

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