A recent study conducted by the blockchain-oriented research firm Clovr found that cryptocurrency coverage in traditional media peaks when the market goes down. The analysis traced the correlation between the coverage of cryptographic values in the last five years and the sentiments of published materials.
During his research, Clovr interviewed 48 US and international mainstream media for pieces covering cryptocurrency from 1 January 2013 to 31 July 2018. All articles were analyzed using the Valence Aware Dictionary and sEntiment Reasoner sentiment analysis tool ( VADER) and the Natural Language Toolkit (NLTK) library in Python. The analysis included the full text of 7,527 online news articles.
In the last weeks of 2017 cryptic media coverage has increased following a drastic reduction in cryptocurrency, which has been attributed to a confluence of factors such as the strong performance of altcoin and Bitcoin (BTC) owners who sell their coins to pay shopping holidays. The same trend was reported in the months of May and June 2018, when a further decrease in cryptographic values was followed by a temporary increase in articles. The study also states:
"Only in 2016, the positive articles far outweighed the negative ones, both in terms of volume and intensity, with the increase in coverage in mid-2017, however, the articles that expressed a negative sentiment became more common This tendency was fueled in part by sad predictions by the likes of Warren Buffett and Mark Cuban, who sensed that "a bubble" was in progress. "
As for news sites that more frequently cover the digital currency, Clovr takes over Forbes and Business Insider, where "a total of 1,335 articles from these two stores were more positive than the overall median sentiment of the items included in the sample, while only 413 of their articles the negative side. "
During the period analyzed, CNBC released nearly 1,000 articles related to encryption, with 52.9 percent positive and 47 percent negative. At the same time, the far-right American news site Breitbart News along with the American news organization left Raw Story published a total of 91 negative and one positive piece. The average sentiment of Reuters, USA Today and Gizmodo items has declined substantially over time.
As previously reported, the use of BTC for commercial payments has significantly decreased this year, according to a Chainalysis study. Although Chainalysis recognizes an increasing stability of BTC, the value of payments with Bitcoin has plummeted from $ 427 million in December 2018 to $ 96 million in September 2018.