Introduction
Like all financial assets, the price of a cryptocurrency is influenced by supply and demand. These forces, in turn, are often shaped by public opinion, news, social media, and investor psychology.
Many traders analyze the market’s sentiment to predict the short and mid-term potential of a crypto asset. Along with the technical and fundamental analysis, investigating the crypto market sentiment can be a valuable addition to a trader’s toolkit.
What Is Market Sentiment?
Market sentiment is the collective attitude of traders and investors towards a financial asset or market. The concept exists in all financial markets, including cryptocurrencies. Market sentiment does have the power to influence market cycles.
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