According to Joe Vezzani, CEO of social media analysis platform LunarCrush, despite the rising prices of Bitcoin (BTC) and other digital assets, retail investors remain skeptical and are not easily swayed by the current market hype.
According to Vezzani’s assessment, social buzz and general public engagement with Bitcoin have been significantly lower than during the previous major bull market. There have only been two noticeable surges in Bitcoin-related posts over the past six months, specifically in January and March.
The reason for the references to January could be attributed to the excitement surrounding the approval of bitcoin exchange-traded funds (ETFs) on the US securities market. Specifically, on the 10th of January, the SEC gave its green light to applications from asset managers seeking to launch spot Bitcoin ETFs.
In March, there was an increase in the number of Bitcoin-related posts when it hit a new record price. Yet, the consistent flow of posts persisted even as the Bitcoin price peaked at an astounding $73,737 on the 14th.
In simpler terms, the number of times Ethereum or ETH were mentioned on social media stayed relatively consistent for the past six months. But there’s been a noticeable decrease in mentions starting from March.
Over the past six months, Solana (SOL) has experienced multiple spikes. These surges are believed to be fueled by the meme coin craze on the network. However, there was a decrease in social media mentions of Solana and its token SOL during early April.
Vezzani pointed out that once you exclude spam and bot engagement, the crypto community might be witnessing a decrease in social media interaction. In simpler terms, he meant that after filtering out unwanted content from automated sources, there could be less genuine activity happening in the crypto realm on social media.
“In terms of the number of creators and influencers posting daily, we have witnessed growth. However, the notable change we are not observing is in the level of engagement with those creators.”
Despite significant upcoming milestones such as the Bitcoin halving, Vezzani is not convinced that it will lead to a noticeable increase in retail participation. He explained that the halving is generally considered a matter of interest primarily for industry insiders.
“Newcomers find Bitcoin hard enough to understand, and explaining complex ideas like halving might make it even more confusing and unappealing for the general public,” he pointed out.
Vezzani explained that as new cryptocurrencies and trading platforms surface, the market remains fragmented. By examining social engagement data, he thinks traders can gain a competitive advantage.
“Traders who leverage social media data acquire a significant edge over the rest of the market by having access to an additional critical metric that drives market movements at their disposal.”
An executive made the point that social media data can help protect traders from potential losses or uncover cryptocurrencies with a strong online following, likely to endure in the long term.
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2024-04-10 13:17