From the wild price swings of Bitcoin to the emergence of stablecoins, cryptocurrency news keeps investors and observers on their toes. Learn about the latest developments in this fast-moving industry from Forbes’ comprehensive source for all things crypto.
A central feature of cryptocurrencies is their decentralized nature. This means that when positive or negative news regarding a community coin emerges, it can affect market sentiment and prices much more dramatically than that of firm-based coins. When the value of a company-backed coin, for example, rises or falls, the underlying owners are typically able to put in place measures such as variations of staking rewards and buyback-and-burn to help offset the effects of such news.
Blockchain technology underpins all cryptocurrencies and related products such as non-fungible tokens (NFTs). In essence, it is a virtual spreadsheet that records every buying and selling transaction in the crypto world, arranging them in blocks that are linked together to form a giant chain — hence its name. The technology has also enabled the creation of so-called stablecoins, which are supposedly backed by a real asset such as a fiat currency. However, high profile price collapses of stablecoins have raised questions about the reliability of this approach.
The NLP algorithm used by TRMIs is designed to capture a wide range of sentiments, ensuring that even if a specific word is not explicitly in the TRMI lexicon, synonyms or contextually similar expressions are likely to be identified and categorized accordingly. This ensures that one-minute sentiment data is comprehensive, covering a wide spectrum of emotions and themes. Using this data, we find that when a coin’s price jumps, the probability of jumping is increased significantly for bigger coins, as they typically receive more media attention and are therefore exposed to more potential traders when significant news emerges.