On June 17th, a cryptocurrency analytics company, called Crypto Metrics, partnered up with the Social Media Analytics team, in order to provide a specific feed that will calculate the overall sentiment towards the market based off of social media posts on Twitter.
The new implementation is tailored towards supporting crypto traders in structuring their trading strategies according to what the social media “trend” is at that time for cryptos.
As it’s already known that cryptos very often react to the smallest of tweets from influential people in the market, it’s going to be a great addition to the tool arsenal.
Unfortunately, the service will only target Twitter in its infancy, as the CEO said they are not even considering integrating Facebook, which is understandable.
If we take a look at the disparity between the two platforms, it becomes obvious that connecting with company leaders and employees is much better on Twitter, alongside regular posts from the community.
The sentiment feed will use a calculation algorithm, which will monitor the channel for crypto-related tweets, use 19 different aggregate methods and finally compile them into one single screenshot every minute.
Although this is a new addition for the crypto community, it’s nothing sensational for the traditional financial markets. The SMA has already been providing this feature to Forex and stocks traders for years now, but since cryptos are so responsive to market sentiment, it took a little while to develop a relevant algorithm.