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The Social Sentiment Index measures the sentiment towards the entire cryptocurrency market or individual crypto assets on platforms such as X (Twitter), Reddit, Telegram, and relevant forums.
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The index aggregates the number of active users, the volume of posts and interactions, as well as the dominance within the broader topic spectrum. It then evaluates and weights these values through a content analysis of the posts, classifying them as positive, neutral, or negative.
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What is the significance of the Social Sentiment Index?
Looking back, it can be observed that the general sentiment on social media towards crypto assets is generally more positive than the actual market sentiment. This is where the index gains relevance as an indicator of market movements:
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Highly positive sentiment (>80) indicates not only a high volume of interactions and greater dominance compared to other assets but also significant optimism regarding the growth and/or potential of the market or asset.
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Negative sentiment, even more so than positive sentiment, indicates high uncertainty about the growth and/or potential of the market or asset. Low Social Sentiment Indexes are strong indicators of potential corrections or significant pressure on projects and markets.
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Colors & Values
NEGATIVE
0-40
NEUTRAL
40-60
POSITIVE
60-100
What factors influence the index?
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Number of people commenting on markets or individual assets
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Number of posts concerning the market or assets
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Number of interactions within the topic or asset
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Dominance of asset-related posts compared to overall market posts
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Classification of posts as positive, neutral, or negative
Market vs. Crypto Assets
Crymet not only monitors the sentiment on social media towards the overall market but also towards individual assets. This provides an understanding of how individual assets are perceived on social media and platforms, and how they perform in comparison to the overall market.
While the Social Sentiment Indicator offers useful insights into market trends, it should not be solely relied upon to predict future prices of Bitcoin or other cryptocurrencies. Instead, it serves as a supplementary tool for traders to enhance their decision-making processes.
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Nothing in this article constitutes professional or financial advice, and no information in this article represents a comprehensive or complete statement of the matters discussed. All content in this article does not pertain to the specific circumstances of any individual or organization and is of a general nature.
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