With cryptocurrency being an extensive subject that is not very certain and with different types of sentiment, Big data comes to its rescue when analyzing trends.
One significant indicator for cryptocurrencies is AltcoinAnalytics where everyone participates through a bot on cryptocurrency’s popular chatting platform Telegram.
Three questions are asked in regards to cryptocurrency markets.
1. What probability do you give to the crypto market cap being higher in one month?
2. If you won 1000 USD, what percentage would you invest in crypto?
3. What probability would you assign to bitcoin being below 1000 USD in 6 months?
After taking the time to answer the three questions, the statistical data is made available as seen below.
As seen in the diagram above shows the average response value over 52 weeks. The solid line represents the average sentiment while the shaded area indicates the consensus of the population.
Question 1 is seen to fall till week 48 and then tremendously increase showing that people are positive about a higher cryptocurrency market capitalization. The shaded area is wider too which shows more dispersion.
Question 2 is also seen to follow the same pattern as question 1, suggesting that many started with answering investing 60% of their savings in cryptocurrency. It reduced to about 30% by week 48 and returning to the 60% level by week 52. There is a high dispersion level too as the weeks go ahead.
Question 3 indicates that people thought Bitcoin would fall below $1000, which showcases people had a negative outlook till week 48. Afterward, less than 20% of the people thought Bitcoin would fall below the low mark of $1000.
Overall people’s confidence in cryptocurrency has become positive from week 48 onwards.
Big data analytics can be defined as the complex process of examining large and varied data sets to uncover information such as hidden patterns, market trends and customer preferences. Thus making it easier for individuals and organizations to make a more informed business decision.
However, these are only individual’s perspective, and cannot be relied on as the cryptocurrency market is not only data-oriented but also emotionally displayed. Ensure you read as much news about cryptocurrency markets and the latest updates before deciding on which cryptos to buy and which to sell.
Image Source – Flickr
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