Crypto Market Timing: Historic YouTube Data Marks Bitcoin Highs, Delphi Digital Reveals
Data from cryptocurrency-focused channels on the Google-owned microblogging platform YouTube can, according to crypto research firm Delphi Digital, be used to time the cryptocurrency market, with an increased user base for popular channels historically marking major Bitcoin ($BTC) price tops.
According to Delphi Digital, as CoinDesk reported, the user based of these popular cryptocurrency-focused YouTube channels can be used as a sentiment indicator to determine how retail users are engaging with the space and how they feel about the cryptocurrency market.
Delphi Digital research analyst Priyansh Patel noted that analyzing the relationship between the average weekly views and subscriber growth or decline of these YouTube channels is “far from perfect” but “does provide some valuable insight into the market trend and the impact of retail participation.”
Typically, retail investors are the last to join a rally and to exit the market. Their investment choices are frequently shaped by the information shared through accessible platforms like YouTube and blogs. This means an uptick in YouTube viewership could be a contrarian indicator, as could Google search trends data.
Professional money managers and traders often leverage sentiment indicators focused on retail investors as contrarian indicators—purchasing when retail sentiment is overly negative and selling when it’s excessively positive.
The popularity of YouTube channels that cover crypto, such as The Moon, BitBoy Crypto, DataDash, EllioTrades Crypto and Ivan on Tech, has followed the ups and downs of the crypto market over time. Delphi tracks how the views and subscribers of these channels change every week and uses this data as a sign of the public mood towards crypto.
The firm’s data shows that the weekly gains in subscribers and viewership for the channels The Moon and Ivan on Tech peaked in early 2021, when the price of the flagship cryptocurrency topped $60,000 before enduring a correction.
As the cryptocurrency’s price then moved to a new all-time high above $69,000, viewership for these channels didn’t accompany the growth. Over the next year, both entered a bearish trend.
Notably, the public interest in crypto has not caught up with bitcoin’s impressive performance this year, as it has increased by more than 70% and the number of subscribers and viewers of both channels has not risen much, indicating that the general population is still wary of the crypto market after the harsh crash last year.
As CryptoGlobe reported, however, some analysts are bullish. After the cryptocurrency market entered a frenzy after rumors falsely suggested that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock’s spot Bitcoin exchange-traded fund (ETF) application, an analyst has now suggested that $BTC could reach $1 million and over $21 trillion in market capitalization
Despite the pump and dump Bitcoin’s price went through this week, BlackRock CEO Larry Fink has said that the rally revealed there’s “pent-up interest in crypto,” and noted that he believes the rally came as a “flight to quality, with all the issues around the Israeli war now, global terrorism.”
BlackRock’s CEO added that the firm has been “hearing from clients around the world about the need for crypto.” As CryptoGlobe reported, the founder and managing partner of SkyBridge Capital Anthony Scaramucci, recently revealed he believes Bitcoin’s market capitalization could reach $15 trillion, around 2,660% above its current $540 billion market capitalization.
Featured image via Pixabay.
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