Investor Sentiment on the Cryptocurrency market

[naidray]

I guess it is definitely a risky environment to keep your investments in crypto, I have always found the best sides of crypto and used them such as getting paid in bitcoin for my work and paying other people to do stuff for me and building business ideas around crypto and so forth but the "investment" part of crypto has always scared me, I have been invested in it for over 6 years now however everyday I have lived with the fear of my money going up in smoke and when I wake up I will lose half of my investments.

It actually happened, I have invested in some stuff for a time and all of them got "hacked" or "scammed" or whatever and I have lost money, most recent being bitgrail and it goes waaay long ago if I have to talk about the first time but in general I stopped doing that because even having some money aside for some coins is now risky enough because even the coin owners could just take the funds they have and leave with a scam coin behind them.

[setialovers]

I am believe negative news give big sentiment to investor. Negative news bring most cryptocurrency price drop more than 70% in this year. But recently, many positive news come to market and i am believe market condition will recover again.

[cc80aa]

   A study on business school claims that the whims and caprices of investor dictates cryptocurrency prices.the study, also claims that economic indices do not play a significant role in sharing the market dynamic.
 
  In fact, cryptos are only worth as much as people are willing to pay for them.

[CASTIEL05]

I want also to use my knowledge in cryptocurrency in order to integrate it in the field of teaching specially, when I will make my first thesis whenever I proceed to my next degree. I just to emphasize that because I think it will become a successful master thesis for the OP. Investors are triggered in the market condition nowadays. Many people tend to quit in trading because they does not get anything in this industry.

[BrewMaster]

in my experience it is hard to say because this market is still pretty small and very manipulated. and that makes everything near impossible to analyze including the investor sentiment.
for example time and time again we have seen altcoins that had no reason to rise, go up a lot because someone was pumping them and that pump changed the sentiment to buy because many investors are well aware of the situation and want to join in and make the quick profit.

I don't think Bitcoin is particularly manipulated. I've found that reading sentiment and commitments of traders is really useful for BTC, just like it is in the "real" markets like forex. To a large extent, this extends to ETH and the more liquid altcoins.

Much of the altcoin market is very "pumpable" though, because liquidity is so low. I'd say the less liquidity a market has, the less useful sentiment reading is. With low volume / low market cap coins, a single whale can completely change the available supply and demand. That's not possible with larger coins.

what i said above is about the cryptocurrency market in general not bitcoin market. otherwise i agree with you that bitcoin price is not particularly manipulated although manipulations exist in bitcoin always attempting to sway the price in their own favor.

as for other altcoins it is depending on the  coin itself. i would disagree with saying ETH is not manipulated, in fact i believe it is one of the most manipulated coins in the market at the moment mainly because it is centralized and the foundation's livelihood depends on ethereum's livelihood and that is (in the current newbie-filled market) determined by having high market cap which is guaranteed by having a huge supply and a rather high price.

[AccidentalTuber]

People are not losing their mind just yet. People are optimistic and keeping their paith at least the end of this year for a second bullrun. Hope this helps for the thesis.

[BusyShows]

This sentiments depends on many factors from price spike to positive or negative news against cryptocurrency.

[exstasie]

as for other altcoins it is depending on the  coin itself. i would disagree with saying ETH is not manipulated, in fact i believe it is one of the most manipulated coins in the market at the moment mainly because it is centralized and the foundation's livelihood depends on ethereum's livelihood and that is (in the current newbie-filled market) determined by having high market cap which is guaranteed by having a huge supply and a rather high price.

That doesn't make sense. It might benefit the Foundation if ETH has a high price. It doesn't follow that ETH would have a high price just because it would benefit the Foundation. Surely I would benefit from having a million bucks dropped in my lap, but I don't see that happening.

The point is that high market cap coins with globally distributed markets are really not easy to manipulate. There's too much order book depth and would-be manipulators can easily be run over by cross-exchange arbitragers.

Ethereum actually has really deep books. I feel bad for any whale trying to manipulate it because they're going to lose all their coins. It really isn't a "pump and dump" coin at all......that's just something that Bitcoin people like to say as an insult. If you want to ride pump and dumps, you need to look at markets that are 1000x smaller.

[breathlessz]

as for other altcoins it is depending on the  coin itself. i would disagree with saying ETH is not manipulated, in fact i believe it is one of the most manipulated coins in the market at the moment mainly because it is centralized and the foundation's livelihood depends on ethereum's livelihood and that is (in the current newbie-filled market) determined by having high market cap which is guaranteed by having a huge supply and a rather high price.

That doesn't make sense. It might benefit the Foundation if ETH has a high price. It doesn't follow that ETH would have a high price just because it would benefit the Foundation. Surely I would benefit from having a million bucks dropped in my lap, but I don't see that happening.

The point is that high market cap coins with globally distributed markets are really not easy to manipulate. There's too much order book depth and would-be manipulators can easily be run over by cross-exchange arbitragers.

Ethereum actually has really deep books. I feel bad for any whale trying to manipulate it because they're going to lose all their coins. It really isn't a "pump and dump" coin at all......that's just something that Bitcoin people like to say as an insult. If you want to ride pump and dumps, you need to look at markets that are 1000x smaller.

After all, with the size of the marketcap, it will make it difficult for  pope to act, of course their capital is insufficient financially. but sometimes news can move it. so fomo happened and investors came

[spongegar]

Good luck on your Masters thesis, those things really are a pain in the behind to make and your chosen study is almost bloody difficult to consider. Eitherway, my response will be that i think crypto currency has a huge potential and could possibly be the only currency we will use so long as adoption happens ASAP

[jbarcenas18]

I think investors sentiment on the cyrptocurrency market is that they were gonna invest if the cyrptocurrency market is good and high expectations in terms of profit.

[kumala_abi]

The whole bitcoin system started based on the sentiment. Also as the volatile nature of crypto kept the people interested, but the current stability is making the old investors bored

This market is still very new and trading volume is not large so I believe that its future development potential is very good. Put your trust in cryptocurrency because I think it will be a huge financial market in the future.

cryptocurrency developtment still on early stage, so only few investors put their huge money in any projects.but when it adopted and legalize by government daily trading volume will rise sharply.

[Nolimitz84]

I think the main factors that cause different moods in the cryptocurrency market is the news background that surrounds the entire cryptocurrency industry.The more positive the news, the more investors come to the cryptocurrency and the number of hodlers increases.

[hacker1001101001]

I think the main factors that cause different moods in the cryptocurrency market is the news background that surrounds the entire cryptocurrency industry.The more positive the news, the more investors come to the cryptocurrency and the number of hodlers increases.

Yes, I agree with you, news play a very important role in the crypto market. Due to the bad news, the investors being afraid to make an investment in the crypto market. But ultimately when any good news has come about the market then investors will start to come forward to make an investment in it.

[SvonioneFromMangoCoinz]

Hello everyone,

I am currently working on my Master Thesis and as you can guess, the subject of it is ‘Investor Sentiment on the Cryptocurrency market’.

I came on this forum to get answers from the people who have already invested in cryptocurrencies or are actually experimented on this subject. My question to all of you is the following: From your point of view, what could be the factors responsible of sentiment on the cryptocurrency market ?

Just to clarify the terms used in my question, Baker and Wurgler (2006) gives two definition of investor sentiment:
1) The propensity to take risks and to speculate.
2) The overall sense of optimism or pessimism about stocks

Also if you have any papers that could contribute to my Literature Review, I am willing to take your suggestions.

Best,

ycollin

I think you missed a last item. that is psychological analysis. Psychology is really very important in this market. Here we do not call the token as per stock because it does not make sense. Even if you hold more than 36% of your token supply, you still have no voting rights at the company. This is a pumping and dumping market.

[futile-resistance]

The whole bitcoin system started based on the sentiment. Also as the volatile nature of crypto kept the people interested, but the current stability is making the old investors bored

This market is still very new and trading volume is not large so I believe that its future development potential is very good. Put your trust in cryptocurrency because I think it will be a huge financial market in the future.

I am not too sure what everyone else thinks but there are only 2 types of investors we have to think about. One is the small guys like me, some goes from couple hundred to even couple thousand, those are the people who make up a bulk amount of the volume when there are no big huge whales going around causing havoc in the market. The second one is those whales like Craig and what not, people who have the option and ability to destroy the markets in a day or time to time get the market rising up.

The small ones are probably scared and worried, I know I am, we don't know what is happening and what will happen and it looks so dangerous right now, I feel anxious about getting rid of all this stuff. Whales probably feel fine, they have done this before and they have enough money to wait this out until the end and still see the light at the end of the tunnel, they can wait because they are rich. We may not be able to afford to wait.

[maman567]

Many investor have panic for selling their asset right now, how come they have do not afraid with more drop price of bitcoin today, if keep hold all their asset maybe bitcoin and altcoin price more drop and lower price again.

[guoyu78]

The whole bitcoin system started based on the sentiment. Also as the volatile nature of crypto kept the people interested, but the current stability is making the old investors bored

This market is still very new and trading volume is not large so I believe that its future development potential is very good. Put your trust in cryptocurrency because I think it will be a huge financial market in the future.

It is not a good time to sell right now. I know investors are more into getting their cash in hand because when someone wants to withdraw their investment it wouldn't be easy for the investors to get back anything worthy and mostly would cause a big loss in their investments which would also result with them not investing into bitcoin right now.

If an investor leaves right now they will both have a big loss and a trouble of believing in bitcoin ever again, if however they stay a bit longer and hopefully bitcoin goes up at least they will start to trust bitcoin once again and that way they could even reinvest their savings into bitcoin. I know bitcoin may not be the most linear of investments but it is honestly the highest potential investment you could hope for.

[TheUltraElite]

I am believe negative news give big sentiment to investor. Negative news bring most cryptocurrency price drop more than 70% in this year. But recently, many positive news come to market and i am believe market condition will recover again.

This year the negative news affected the market more than what the positive news that was supposed to drive the market. There was no big ETF properly allowing crypto. People became enthusiastic but it was premature because they were all rejected. This lead to some anger in the market for some investors coming into the crypto market as newbies.

cryptocurrency developtment still on early stage, so only few investors put their huge money in any projects.but when it adopted and legalize by government daily trading volume will rise sharply.

Development is still early agreed but dont expect of even hope governments to legalize trading. Crypto is unregulated and people can manipulate markets easily.

[Ewinsane]

The whole bitcoin system started based on the sentiment. Also as the volatile nature of crypto kept the people interested, but the current stability is making the old investors bored

This market is still very new and trading volume is not large so I believe that its future development potential is very good. Put your trust in cryptocurrency because I think it will be a huge financial market in the future.

There has been a lot of buybacks from these levels, I think that would indicate that the price drop actually reached to a point where rich people started to see this as a big opportunity. Do not forget someone who can buy 10 thousand bitcoins usually doesn't need the money all that quickly.

If you and me invest into bitcoin and suddenly have to pay something urgently or have some emergency hospital trouble and what not, we may cash out our bitcoins to pay for those however someone that buys 10 thousand bitcoins usually doesn't need that money that much. Which tells me all those bitcoins bought and withdrawn from exchanges belongs to super rich people who decided that this is the best price to get bitcoin and now storing that coin someone like their ledger waiting for the storm to end.