Reddit Crypto Community Wants to Fool Bitcoin Trading Bots with Sentiment to Spike BTC Price
According to a redditor, bots use data on the popular social network to in order to buy and sell digital assets. This is why he asked the community to start posting hot words and other positive comments on the market. The Reddit thread registered 350 comments in just 24 hours.
One of the Redditors commented that in the crypto market, fundamentals are ignored and the activity in the market is driven by perception, emotion and sentiment. Although the intention was to create a positive sentiment in social networks, this post did not help the market. Furthermore, individuals realized that indeed the market does not follow fundamentals.
There are different tools created by developers to track the sentiment of the cryptocurrency space. This is something that could help bots and traders to take decisions at the time of investing in digital assets. Reddit and Twitter are two of the most popular social networks to check the sentiment of the people.
Specific keywords such as buy, rich, moon, lambo or skyrocket could signal a positive sentiment in the market. This could trigger a ‘buy’ signal for bots and investors. The same happens with negative words such as hodl, rekt, drop or fall. If these negative words are detected, it could trigger a ‘sell’ signal.
It is possible to see Bitcoin’s sentiment on different websites, including enroyd.com. This site allows users to see how the market’s sentiment has evolved during the last months. In order for the sentiment to turn positive, the values should be greater than 0.22. Values between 0.16 and 0.22 are neutral. Smaller results would mark a negative sentiment in the market.
Thus, if redditors would be able to modify this trend, bots would suddenly start to purchase Bitcoin in an artificial way. On January 24th, the sentiment registered an increase compared to January 22nd. Although it remains negative, the move by the Reddit community seems to have affected the BTC daily sentiment.
Nonetheless, Bitcoin and the whole crypto market with the exception of just a few coins, have performed negatively in the last 24 hours. Bitcoin (BTC) dropped 0.47% in the last 24 hours. Now, each BTC can be purchased for $3,583 and it has a market capitalization of $62.71 billion.