In any financial trading space, market sentiment plays a huge role in deciding the outcome or direction of the price over a certain time period.
In the cryptocurrency ecosystem, market sentiment is even more evident and sometimes, it is more important than the fundamental properties of the coin itself. Bitcoin, the world’s largest cryptocurrency, usually recovers quickly from a price fall or hikes at a rapid speed due to its overall market sentiment as many traders trust only BTC, since it holds a market dominance over 69%.
Similarly, other virtual assets also have specific market sentiments which keep them relevant in the space.
According to a recent post by The TIE, an analysis of the top five cryptocurrencies’ Year-to-Date [YTD] long-term sentiment revealed quite a few interesting findings.
Long-term sentiment score was evaluated on the basis of positive sentiment surrounding an asset over the last 50 days, in comparison to the sentiment shared over a period of 200 days before that. A score above 55 was considered bullish, with the range of 45-55 being neutral and any score below 45 indicating bearish sentiment.
The analysis revealed that Bitcoin had the highest long-term sentiment score of 69.3 at the moment, which was calculated until August 25th. The world’s largest cryptocurrency’s score peaked at 70.4 for 2019.
Other than Bitcoin, Bitcoin Cash was also largely bullish with a score of 65.3, a metric which had been evaluated till 16 July. Bitcoin Cash peaked higher than Bitcoin in 2019, with a score of 72.7.
Ethereum and Litecoin remained in the neutral sentiment category with scores of 47.6 and 40.9, calculated on 27th and 9th August, respectively.
XRP’s long-term sentiment on the other hand, was largely bearish, with a recorded score of only 37.6. XRP’s score peaked at 38.6 in 2019.
XRP’s long-term sentiment at press time is not surprising as the price recently plummeted to its yearly low of $0.224, with the virtual asset struggling in the charts to break away from the bears.