The coronavirus has succeeded in bringing turmoil and volatility to financial markets around the world. These developments are being watched closely by investors interested in cryptocurrency. The first quarter market reaction to the coronavirus pandemic leaves behind a number of things for novice and experienced cryptocurrency investors to consider.
Crypto Sentiment
The trading platform eToro recently released its ratings for cryptocurrency sentiment. The report includes both short-term and long-term sentiments and was compiled with the use of data that was supplied by TheTie.
Short-term sentiment is an eToro measure that demonstrates 24-hour investor sentiment in response to crypto activity over the past three weeks. The Long-term sentiment provided by eToro measures a 50-day investor sentiment that is based on the last 200 days. The data used to measure sentiment is mined from Twitter conversations. A sentiment score of more than 50 is considered positive.
Bitcoin Resiliency
Bitcoin earned a positive sentiment score for 60 percent of the days contained in the first quarter of 2020. The lowest sentiment for the quarter was the 19 scored on March 12. It should not come as much surprise that this was the day before a huge drop in value for the coin. The high for the quarter was a score of 81, which happened on January 7.
The emergence of the coronavirus signaled a move away from the S&P 500 for Bitcoin as the value movement for the digital currency became more in tune with the market movement of gold.
Altcoin
Stellar led the way for positive sentiment among altcoins with a favorable outlook from investors for 67% of days in the first quarter. Cardano and Ethereum Classic were at the rear with positive sentiments aimed in their direction on 45% of first-quarter days.
EOS posted the highest sentiment score for the quarter with 91 on January 14. Iota posted the same score on February 11. A day later, a scare from “the Trinity Hack” brought Iota down to the lowest sentiment of the quarter at 17.
The Takeaway
Despite the negative market influences of the coronavirus, cryptocurrencies continued to reach peaks that suggest stability and potential profitability over the next quarter. Most notable to investors is the fact that cryptocurrencies were less volatile during March when the full brunt of the coronavirus effect was unleashed on markets. Crypto investments seem even more stable when you consider the fact the world was alerted to the break down in oil talks between Russia and Saudi Arabia at the same time.
Most market insiders consider cryptocurrency to be a solid investment opportunity during an extremely volatile time for investors.
Further Reading: https://cryptobriefing.com/insights-cryptocurrency-sentiment-coronavirus-turmoil/
