Is Social Sentiment the Key to Predicting Crypto Trends?

Context Analytics has created a long-term cryptocurrency signal (CC LT Score) using social sentiment from Twitter messages on all cryptocurrencies. This looks at the tone of sentiment from the previous two weeks and compares it to the previous two months to generate a z-score.

The graph below demonstrates the predictiveness of this signal on the most recent run on BTC. Between September 8^th to September 26^th, the CC LT Score increased from under -1.5 to over 2.5, which is a dramatic shift signaling a strong positive signal on cryptocurrencies.

The CC LT Score has recently hit a score of 3.3. The last time the score hit this high was October 26^th, 2023, which was towards the beginning of a bull run for BTC when it rose from $30,000 to $60,000.