Well, bitcoin and a few other cryptocurrencies have enjoyed quite a banner year thanks to their growing popularity and news of new regulations that could possibly lead to more governments accepting bitcoin. While countries such as the US are scrambling to put a policy in place, that has not stopped many high profile individuals as well as institutions from showing their support for the cryptocurrency, and for a good reason. Bitcoin recently hit another all-time high, which seems to be happening every other Tuesday for bitcoin. The best part about Bitcoin is that this cryptocurrency currently rallies above the rest and is showing more promise than ever before.
With all the excitement that bitcoin has brought investors this Thanksgiving and is expected to many more times in the coming years, many newbies who want to get into the action are wondering what the best strategy is to enter the bitcoin space and make a profit via bitcoin trading. Well, if you’re also thinking along the same lines, then you have come to the right place.
Social Listening Trends
Much like how we tend to purchase stuff (we usually don’t need) after seeing a cool FB or IG post, or read reviews on online forums, in the world of cryptocurrencies, social listening is growing into one of the more reliable ways for new and experienced bitcoin traders to get their information (well, at least part of it). It’s no surprise that along with the recent bitcoin and ether price rally came a slew of clink and clatter on various social media platforms, with some boasting of their incredible foresight. In contrast, others shared links where new investors could get in on some of the action.
Ask any experienced bitcoin trader, and they will tell you that there is a clear correlation between social sentiment and a cryptocurrency’s price. This means that social listening cannot only be great for breaking news but can also be used for predicting the price volatility of cryptocurrencies, which in this case, is bitcoin. Many forward-thinking bitcoin traders are already using cutting-edge data analysis methods to predict bitcoin’s price movements that are solely based on social listening.
One of the best examples that we have on the impact of social sentiment on bitcoin’s price is when Tesla and SpaceX CEO Elon Musk first admitted to having bitcoin stock, which sent bitcoin’s market price through the roof, which was followed by Musk’s concerns on the environmental impact of bitcoin mining, which caused the crypto’s value to spiral down. This is just one example of the massive effect that social sentiment has on bitcoin’s market price.
Keeping that in mind, bitcoin traders are starting to use social listening and AI-powered algorithms or emotional data algorithms (EDAs) to help quantify the emotional value that a cryptocurrency has on social media users. Traders can then gauge this data to either predict bitcoin’s pricing or can also be used to drive public sentiment for or against a particular cryptocurrency.
Currently, there are emotional data intelligence companies that are providing this data to bitcoin traders as well as bitcoin trading platforms who regularly use it to get a jump on the market price or determine price volatility. In this way, new technologies such as emotional data intelligence, social distancing, and machine learning are proving to open up a whole new framework of how to predict bitcoin’s price volatility. For bitcoin traders, leveraging social listening with trusted bitcoin trading platforms such as https://bitcoinsystem.app/ can prove to be a winning combination when it comes to gauging market sentiment while trading bitcoin.