From the time of creation and emergence, the cryptocurrencies had a symbiosis with the media who reported daily about everything related to it. Despite the ability to achieve mutual benefit, crypto communities and newspaper departments would often be in conflict.
What is very interesting is the fact that today a huge number of cryptocurrencies are competing for the attention of the investor. What a journalist can make is the difference between ups and downs. After all, what other news rhythms could offer such convincing stories about the riches and their way of life?
In this study, we have been able to show the relationship between crypto and the publications that they have been following in the past years. Also, our readers can see the correlation between the value of a particular crypto and the difference of its representation in crypto reporting. To learn how news and cryptocurrencies affect each other, continue reading!
Crypto Valuation vs. Media Coverage
When considering the historical changes in the market maximum and the coverage of the cryptocurrencies as a whole, the minimum level of coverage before 2017. was pretty low. In addition to occasional events in the newspapers, cryptocurrencies had a few coverage articles before their explosive growth.
By December 17, 2017. coverage exploded and the whole world was talking about Bitcoin alone. At this time, its price amounts to an all-time high of $19,783.21 per coin.
Of course, this culmination could not be maintained. Values declined sharply in the last weeks of 2017. Experts have come to a sudden drop in the mix of factors, and these are powerful performances of the other cryptocurrencies, so Bitcoin was sold more than anything else plus people were selling Bitcoin themselves to go on a winter vacation. Regardless of the cause, the Bitcoin crisis has created great pressure.
A Timeline of Tone
What we can notice in the coverage of the cryptocurrencies is that the attention and tone were not clearly positive. In fact, these data tell us that the coverage against bitcoin grew, but that the news was moving towards neutrality all the time.
In the middle of 2017, newspapers were talking about the crypto more and more in a negative tone. Also, this trend was supported by some of the biggest investors such as Mark Cuban and Warren Buffet. They said that bubble would soon explode and leave investors without investment.
In the period of market changes in the recent days of 2017, many written articles were becoming more and more negative. What is important to note is that technology is moving at an enormous speed. However, these changes also lead to the normalization of cryptocurrencies. As technology changes and progress, it will increasingly lead to the normalization of cryptocurrencies.
When we compare data with the main news items on which the cryptocurrencies are most often displayed, we can find that the coverage was quite positive. Large media, such as CNBC and Forbes, released about 2,000 articles on crypto, and only 30 of them had negative connotations.
On the other hand, media such as Reuters and the International Business Times issued 200 reports of which even 160 were negative. CNet and Time magazine did not report about the cryptocurrencies negatively in their communications.
Only some media houses, like Breitbart News, had more negative than positive articles. What surprises us is the fact that the president of the company, Steve Bannon, spoke of cryptocurrencies in a populist sense. Namely, his critical tone was a crucial pattern among publishers.
Huge Potential or Only a Hype?
As the years go by, we see that copying bitcoins is a very turbulent mission. As people are more informed and the volume of reports is bigger, the skepticism among investors is smaller. However, regardless of your decision, external influences on a subject are hard to ignore. In some traditional branches of finance, it has become standard that media can influence the value and market trends. But in an industry like this, news can be equally powerful.
In the end, we recommend that you check out all the allegations because nobody has an insight into the future. As you form your own beliefs and enter the crypto world, try to have more credible pieces of information. Gray areas and especially cryptocurrencies are worth exploring!