Quantitative Sentiment Analysis: Crypto Market Rally to Slow but NEO is Bullish

Altcoin Analytics

Altcoin Analytics CryptoGlobe

The sentiment graph above is calculated using algorithmic text analysis which classifies a Tweet as positive or negative on a scale from +1 to -1, this is done per individual tweet over 100+ cryptocurrencies. By looking at sentiment over time it establishes a baseline to see if sentiment is becoming more positive or more negative.

Last week there was a significant increase in sentiment preceding the upward correction in overall market cap from July 2nd. Today there is a significant downturn in sentiment that suggest the recent rally will be short-lived. Sentiment is still at moderate level so it is too early to draw conclusions. To see how it will evolve over the coming days subscribe to the newsletter at AltcoinAnalytics.com.

Exposure

Exposure represents the aggregate recipients for crypto related tweets and it is continuing its downward trend. Overall recipients has seen a small but steady decline over last month. This can also be due to the bot clean up performed by Twitter itself, with over 70 million accounts deleted in the past month. To see how bot noise is eliminated also see the NEO update below.

Altcoin Analytics CryptoGlobe

Sentiment on Crypto Newsites

The graph below shows a brand-new sentiment indicator. The indicator analyses headlines of large crypto-related websites and calculates sentiment. In other words, it measures if headlines are becoming more positive or negative, the three subplots show:

Altcoin Analytics CryptoGlobe

Sentiment: Sentiment of crypto headlines over time (summed over all articles). If headlines are increasing more positive than this indicator goes down and vice versa. Sentiment is shown for the sentiment of headlines (Sentiment, blue line) and for the description of the article (SentDes, yellow line)

Consensus: Shows if there is much dispersion across articles or if they have similar sentiment. Ie it shows if one website is positive while the other is negative, or if all websites are commonly positive or negative

Number of articles analysed: Shows the count per day of articles analysed. It shows for example that there are somewhat less articles published in the weekend compared to weekdays

News sentiment on crypto related websites is also somewhat decreasing, after some significant increases since the start of July. The rise in sentiment from the start of July is represented in the bullish market in the first week of July.

Individual Analysis on NEO

Altcoin Analytics CryptoGlobe

Finally, there is the individual analysis of NEO. The plot below shows (1) Market cap, and (2) sentiment of Twitter accounts with significant number of followers. This eliminates sentiment of bots and only allows for messages for which many people see value. Again, it shows sentiment picking up before prices move up. For analysis of more crypto's visit AltcoinAnalytics.com

Crypto Derivatives Hit a 2020 Low in June: CryptoCompare Report

Michael LaVere
  • CryptoCompare's latest edition of the 2020 Exchange Review Guide found that both derivatives and options trading plummeted during the month of June.
  • Crypto derivatives recorded their lowest monthly volume in 2020, with exchanges across the board witnessing a decline.

Cryptocurrency derivatives and options trading saw a double-digit decline, with the former reaching its lowest monthly volumes in 2020. 

According to the latest edition of the CryptoCompare Exchange Review, both cryptocurrency derivatives and options took a hit in June. 

Derivatives volume dropped a whopping 35.7% last month to $393 billion, reaching its lowest monthly volume in 2020. Despite the decline, total spot volumes witnessed a greater decrease of 49.3% to $642 billion. As a result, crypto derivatives gained market share during the month of June and represented 37% of the market compared to 32% in May. 

cryptocompare derivativesDerivatives Trading Volume vs Spot Market in June | Source: CryptoCompare

According to the CryptoCompare report, all derivatives exchanges saw “large decreases” in trading volume in June, with BitMEX undergoing the greatest proportional decline (-50.3% to $51.6 billion). 

Despite undergoing a 38.3% decline in trading since May, Huobi was able to maintain its status as the largest derivatives exchange by volume at $122.4 billion. OKEx ranked second with $106.9 billion in volume (down 30.4 percent from May), followed by Binance with $85.9 billion (down 34.2%). 

Maximum daily derivatives trading volume clocked in at $23.8 billion in June, occurring on the first day of the month. 

Options trading also witnessed a decline in June, although less severe than the derivatives market. The report found Deribit monthly options volume decreased by 17.8%, which was less of a decrease than seen on other derivatives exchanges only offering futures products. 

deribit options trading june 2020Deribit options trading June 2020 | Source: CryptoCompare

Daily options trading witnessed two major peaks in volume on the 2nd and 26th of June at $178 million and $162 million, respectively. The report claims these peaks were comparable to the daily records established in previous months. 

Featured Image Credit: Photo via Pixabay.com