Course Content
What Is Crypto Market Sentiment?
Market sentiment considers investors' thoughts, feelings, and moods regarding an asset. These feelings don't always reflect an asset or project's fundamentals but can significantly affect the price. Market sentiment analysis is a form of research that uses this information to try and predict price movements. By tracking the market dynamics with its participants' overall attitudes, you can understand the amount of hype or fear surrounding a specific cryptocurrency.
What Is Crypto Market Sentiment?
About Lesson

To understand the market’s sentiment, you’ll need to collect the market participants’ views, ideas, and opinions. Again, while it can be helpful, you should not rely solely on market sentiment analysis. You could rather use the information collected in combination with your existing knowledge and experience before drawing actionable conclusions.

To get a basic feel, you might consider investigating the relevant social media pages and channels to understand what the community and investors are feeling about that specific project. You may also join official forums, Discord servers, or Telegram groups to talk directly with the project’s team and community members. But be careful! There are many scammers in those groups. Don’t trust random people, and make sure to do your own research before taking risks.

Social channels are just the first step. You can use many methods to get a broad overview of market sentiment. On top of monitoring social channels (particularly Twitter, given its popularity among cryptocurrency fans), you might consider the following:

1. Track social mentions with data collection software tools.

2. Stay up to date with the latest industry news through media portals and blogs. Binance Blog, Binance News, Bitcoin Magazine, CoinDesk, and CoinTelegraph are some examples.
3. Set alerts or track large transactions made by whales. These movements are regularly tracked by some crypto investors and sometimes might have an impact on market sentiment. You can find free whale alert bots on Telegram and Twitter.

4. Check market sentiment indicators and pricing signals on CoinMarketCap. These indexes analyze a range of different sources and provide easy summaries of current market sentiment.

5. Measure the level of hype surrounding a cryptocurrency with Google Trends. For example, a large search volume for “How to sell crypto,” could suggest that the market sentiment is negative.