Focusing on what crypto might bring, rather than its past, has sent prices soaring, suggests new research.
People are talking about bitcoin. They have been talking about bitcoin for a long time, of course, but the way they are talking about bitcoin has changed. A study by data provider Indexica shows how the conversation has shifted – explaining the stellar price rise in April and May.
Indexica’s analysis of thousands of documents showed ‘three main drivers: a more complex conversation surrounding Bitcoin, fewer concerns about fraud and a shift in the tense of how Bitcoin is talked about from the past to the future.’
That contributed to a major impact on bitcoin’s price, which has doubled over the course of this year and is currently consolidating in the $8,000 range. Simply, people are focusing less on bitcoin’s past, and particularly all the scams and hacks that have plagued the digital currency in recent years. Instead, they are looking to the future, and what the role – and value – of bitcoin might be in the years to come. Needless to say, that has had a huge effect, similar to the one seen the stock markets when so-called ‘futurity’ comes into play.
‘Think about it,’ says Zak Selbert, Indexica’s CEO. ‘Executives will speak of good things they expect to happen on conference calls before they happen. They only mention mistakes afterwards.’
Bitcoin’s uptrend is now into its fifth month – though the breakout was only confirmed six weeks ago. Last time around, the bear market took a year to play out, and was followed by a three-year bull market. The past won’t repeat itself exactly, but it’s reasonable to assume we might be heading into a multi-month uptrend, and potentially a two-to-three year bull cycle – powered by the halving in a year’s time.
Sentiment has changed, and crypto is coming back into fashion.
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