Binance Coin Price Index

Binance
Blockonomics is a decentralized and permissionless bitcoin payment solution

Investing in an unusual coin can be a fun and exciting way to invest. Instead of simply trading paper as you do in the stock market, you can have tangible assets that you can collect and enjoy its beauty. Investment banking company Salomon Brothers have been tracking the performance of the U.S. coin basket. Collectors suitable for investing in the currency since 1978 and following the performance of the rare currency market compared to DOW, bullion, Treasury, and even crop prices. The unusual volatility seen in the stock market is not really reflected within the rare currency market – the return on time compared to DOW exceeds other categories of asset-like assets and is kept before the buyer price index.

Why Measure Fear and Greed?

People tend to be greedy when the market goes up which leads to FOMO (Fear of loss). Also, people often sell their coins with an unreasonable reaction to seeing red numbers. Through our Fear and Greed Index, we try to assist you in responding emotionally to excess. There are two simple ideas:

Excessive fear can be a sign that investors are very worried. That would be an opportunity to buy.

If Investors are overweight, it means the market needs to be adjusted.
Therefore, we analyze current Bitcoin market sentiment and reduce the numbers into simple meters from 0 to 100.

Binance

Data Sources

We collect data from the following five sources. Each data point is considered equal to the previous day to visualize meaningful progress in changing the crypto market sentiment.

First, the current index of bitcoin only (we give different indices for large altcoins soon), because a large part of it is volatile price fluctuations.

But let’s write down all the different features that we add to the current index.

Flexibility

Measure current flexibility and magnitude. Bitcoin withdrawals and compare it to the corresponding average prices for the last 30 days and 90 days. We argue that the unusual rise in volatility is a sign of a terrible market.

Market Momentum / Volume

Also, we measure current volume and market momentum (and compared to average days of 30/90 days) and then add those two values. Often, when we see high purchasing prices on a positive daily market, we conclude that the market is extremely greedy/bullish.

Communication Forum

Although our re-edit sentiment analysis is not yet in the live index (we are still trying to market keywords in the text processing algorithm), our Twitter analysis is working. There, we collect and count posts on different hashtags for each coin (publicly, we only show those for Bitcoin) and check how fast and how many interactions they find in periodic frames). An unusually high level of interaction results in a growing public interest in the financial system and in our eyes is accompanied by greedy market behavior.

Dominance

Currency domination is similar to the market share of the entire crypto market. Especially in Bitcoin, we assume that the rise in the dominance of Bitcoin is due to the fear (and thus decline) of speculative alt-coin investments, as Bitcoin is increasingly becoming a secure cryptocurrency. On the other hand, as the dominance of Bitcoin diminished, people, became more and greedier by investing in the most dangerous alt-coins, dreaming of their own opportunity to run the next big bull. However, analyzing the dominance of a currency other than Bitcoin, you can argue otherwise, as the increased interest in an alt currency may affect the bullish/greedy behavior of that particular currency.

Trends

We are extracting data from Google Trends for Bitcoin-related search queries and reducing those numbers, especially the conversion of search volumes and other popular search recommendations. For example, if you check out Google Trends for “Bitcoin”, you will not find much information in search volume. But in the meantime, you can see that there is currently a + 1,550% increase in the query “bitcoin price fraud” in the related search query box (from 05/29/2018). This is a clear sign of fear in the market, and we apply that to our index.

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