Cryptocurrency & Blockchain Intelligence

MarketPsych Analytics for Cryptocurrencies

Download PDF

Analytics Use

MarketPsych produces real-time sentiment and thematic scores on 500+ cryptocurrencies derived from thousands of news and social media sources in 13 languages. Beyond simple sentiment scores, the data includes unique themes such as Adoption, Scam, CodeSentiment, and 30+ others. The data is published in minutely, hourly, and daily frequencies.

“Our findings indicate that social media sentiment significantly predicts crypto returns…”
~ Canayaz, Cao, Nguyen, and Wang. 2023.

MarketPsych’s cryptocurrency sentiment and thematic data is used by hedge funds, traders, and exchanges and is explored in dozens of academic papers. This sentiment data gives clients a unique edge:

– Improve buy and sell timing

– Develop trading ideas

– Find the ‘next big coin” and avoid scams

– Access analytics in charts and widgets

Sentiment Tracking

A chart of a Solana ($SOL) sentiment moving average crossover versus the SOL/USD price is depicted below from Jan 2023 to Aug 2024.

Actionable Visualizations

Engaging tools and graphics – some visible here in the

WebApp

- provide clients actionable insights, such as the top Sentiment cryptocurrencies in the Screener and Heatmap depicted below.

Cryptocurrency Sentiment Research

Quantitative research shows that sentiment drives cryptocurrency returns. In the example below we select the top 10 cryptocurrencies by Buzz and rank them by their average social media sentiment over the prior 30 days. The strategy then buys the two most positively perceived cryptocurrencies and holds them over the following month. In the equity curve plot below we assume no transaction costs, and the blue equity curve depicts the growth of $1 invested in these top two sentiment cryptocurrencies while the orange line depicts the growth of $1 invested in Bitcoin over the same period.

Academic and internal research such as the above, including python notebooks for replication, are available with a trial or subscription.