Is there still room for improvement in the total market value of cryptocurrencies?

[alice.yao]

Q: Faced with a bear market, cryptocurrency holders are not confident, and the volume /keyword searches is shrinking. According to your judgment, is there still room for improvement in the total market value of cryptocurrencies?

A: From the previous data analysis, there are two factors that can influence and predict the cryptocurrency behavior pattern: the momentum effect and investosrs’ attention.

The momentum effect is that if the bitcoin price rises continuously over a week, it may keep growing for the next week. This is a common feature of almost all known asset classes, and we have found that the momentum effect strongly affects the cryptocurrency. We have designed a simple investment strategy in which investors buy Bitcoin only when their price increases by more than 20% from the previous week. This strategy has excellent returns and a very high Sharpe ratio.

In addition to the momentum effect, investors’ attention have a large impact on the price of cryptocurrency. If people search for a large amount of cryptocurrency on Google or Twitter, the next return on cryptocurrency will rise. At the same time, if investors hold negative concerns, the next rate of return on the cryptocurrency will decrease.

It should be emphasized that the momentum effect and investors’ attention are not unique phenomena in the cryptocurrency market. What we find is that in the cryptocurrency market, if placed in the daily average or weekly average, these two phenomenon is more significant. But if you look at it in the long run, this phenomenon may not be obvious.

From the analysis of past data, if the cryptocurrency behavior mode does not change, when the cryptocurrency market value rises and the attention is high, there will be a greater probability of earning money. Chasing up or killing down? On average, chasing up is easier to make money. Bottom-hunting, unless you know what is the bottom, or it is difficult to have high returns.

[alice.yao]

I write and translate articles about cryptocurrency, including trading strategy in python. I work for a quant platform in China: fmz.com. I share my strategy on it. it's a professional platform for traders to write, backtest and run their strategy.

[CRcentrum]

I write and translate articles about cryptocurrency, including trading strategy in python. I work for a quant platform in China: fmz.com. I share my strategy on it. it's a professional platform for traders to write, backtest and run their strategy.

People from other countries can use this platform?

[Literally the hedgehog]

Yes, of course. The cryptocurrency market is in its beginning and is still growing. Blockchain technology isn't spread all over the globe enough but the success of this technology is being recognized. That's why crypto trading is getting bigger and bigger.

[BittPress]

Yes, there is a lot to come ahead in cryptocurrency market as the new currencies are coming out some very promising coins are coming out which will put a high impact on the market.

[SamNeels]

Crypto is getting much more popular and value has appeared to be different than some years ago.
It's the future, indeed!

[alice.yao]

If you have an idea of trading, you can write it in code and run the strategy to gain profit. Visit FMZ Quant to make your strategy better.

[waitingforday]

Everything will change after ETF, lots of new money from investors

[alice.yao]

I write and translate articles about cryptocurrency, including trading strategy in python. I work for a quant platform in China: fmz.com. I share my strategy on it. it's a professional platform for traders to write, backtest and run their strategy.

People from other countries can use this platform?

yes, for sure, people from any countries can use FMZ Quant platform.
If you have an idea of trading, you can write it in code and run the strategy to free your mind and gain profit. That’s what I do on FMZ Quant.
If you don't have programming skill, they offer service of writing strategy for you.

[alice.yao]

[BenFormer]

Investors are traders are still have a big impact on crypto market.
That's for sure.