Data from YouTube Channels Can Help Time the Crypto Market
According to Delphi Digital, a crypto research firm, data from cryptocurrency-focused channels on YouTube can be used to time the cryptocurrency market. The firm suggests that the user base of popular channels can serve as a sentiment indicator to gauge how retail users are engaging with the space and their feelings towards the market.
Analyzing the relationship between average weekly views and subscriber growth or decline of these channels may not be perfect but it does offer valuable insight into market trends and the impact of retail participation, says Delphi Digital research analyst Priyansh Patel.
Using Retail Sentiment as Contrarian Indicators
Retail investors are often the last to join and exit the market, and their investment decisions are influenced by information shared on accessible platforms like YouTube. Therefore, an increase in YouTube viewership could be a contrarian indicator. Professional money managers and traders tend to leverage sentiment indicators focused on retail investors to make decisions—buying when sentiment is overly negative and selling when it’s excessively positive.
Tracking Popular Crypto YouTube Channels
The popularity of YouTube channels covering crypto, such as The Moon, BitBoy Crypto, DataDash, EllioTrades Crypto, and Ivan on Tech, has mirrored the ups and downs of the crypto market over time. Delphi Digital tracks the weekly changes in views and subscribers for these channels to gauge public sentiment towards crypto.
In early 2021, when Bitcoin reached a price above $60,000 before correcting, both The Moon and Ivan on Tech saw peak gains in subscribers and viewership. However, as Bitcoin’s price continued to rise to new all-time highs above $69,000, viewership for these channels did not accompany the growth. Instead, they entered a bearish trend over the next year.
Public Interest in Crypto Lagging Behind Bitcoin’s Performance
Despite Bitcoin’s impressive performance this year, with a more than 70% increase in price, the number of subscribers and viewers for popular crypto channels has not risen significantly. This indicates that the general population is still cautious about the crypto market following last year’s crash.
Hot Take: Analysts Remain Bullish on Bitcoin
While public interest may be lagging, some analysts remain bullish on Bitcoin. After false rumors of the approval of BlackRock’s spot Bitcoin ETF application caused a frenzy in the market, an analyst suggests that Bitcoin could reach $1 million and have a market capitalization over $21 trillion. BlackRock CEO Larry Fink also acknowledges the “pent-up interest in crypto” and has been hearing from clients around the world about the need for crypto.
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