Project Summary

Cryptocurrencies, despite offering significant investment potentials, are commonly viewed as highly volatile and speculative assets. Incidents like the FTX collapse and the recent financial fraud case involving Sam Bankman-Fried add further uncertainty to the Bitcoin market. However, rather than inducing fear, the Bitcoin market has been exhibiting extreme greed (see https://coincodex.com/sentiment/ and https://www.cointree.com/learn/crypto-fear-and-greed-index/). Further driven by the great optimism surrounding the approval of Bitcoin and Ethereum exchange-traded funds in various countries, the cryptocurrency market capitalization reached $2.4 trillion in the second half of 2024. Yet, there were hardly any applicable tools that could join various jigsaw puzzles together. Many available investment sentiment sources, including the Coincodex sentiment index and Crypto Fear & Greed Index mentioned above, lack verification and transparency, making them unsuitable for commercial use and risking misinterpretation by non-professionals as financial advice.  

This project proposes to collaborate with DeepSearch Labs to establish a new Cryptocurrency Volatility Indicator with Sentiment (CVIS), integrating traditional financial risk models and sentiment scores into the Long Short-Term Memory (LSTM) machine. We will contribute to establish a scientifically verified and pilot-tested indicator (CVIS), which will be communicated and promoted through platforms like X, LinkedIn, UKFin+ web, DeepSearch Labs and our Crypto Quants research blog. 

Project team