Big Data Analytics: Catching 30% Profit Opportunity in Bitcoin Cash
This is another example of how our TweetTraders platform caught a 30% increase in Bitcoin Cash ($BCH), a cryptocurrency that had over $1.0 billion in daily trading volume.
On September 26, 2018, CoinDesk, a digital currency exchange with over 700,000 followers retweeted that mining giant Bitmain Technologies Ltd. has officially filed for its IPO. Bitmain is the world’s largest designer of ASIC (Application-Specific Integrated Circuit) chips used for cryptocurrency mining. This is very important news for the cryptocurrency trading market because it was public knowledge via an August 13th tweet from Cøbra, which revealed that Bitmain owned over 1 million coins of $BCH valued at $528.52 million. The implication is twofold: 1) That this highly credible investor is very bullish on $BCH and 2) Bitmain may use some of the IPO proceeds to increase its holdings in $BCH.
On September 26th, CoinDesk retweeted Bitmain has filed for its IPO:
Previously, on August 13th, Cøbra revealed that Bitmain was holding 1M+ BCH:
In less than 24 hours, $BCH rose by approximately 30%, from $445.54 to $585.36. As seen in the graph below, the price of $BCH immediately shot up by 16.6% to $519.4 in the first four hours and a total 22.8% to $547.20 in 48 hours.
“This spike was definitely caused by Bitmain’s IPO filing,” said Mati Greenspan, senior market analyst for social trading platform eToro with regard to the BCH spike.
Prices are estimates based on publicly available trading data at or near the times indicated.
Given the significant speculation about a potential Bitmain IPO over the last few months, a user of TweetTraders could have caught this tremendous profit opportunity with these three simple steps:
Step 1: Enter the coin or coins you want to follow.
Step 2: Enter any number of keywords you want to use to trigger alerts.
Step 3: Pick the type of alert you wish to receive.
Receive notification when your alert gets triggered
TweetTraders can also help with execution to help traders time the peak of the trade.
As shown below, users also receive information on how the coin (or stock) moved over the 48-hours post-tweet to help determine the optimal trading strategy. In this case, there were five total tweets triggered on these keywords over the last three months and in four of those instances the coin moved +/- 5% within the next 48 hours — highlighted as “Notable Tweets” below. You will note that the trading history indicates that the user can expect the peak in the 24–48-hour period, which is exactly what happened in this case.
Example of Execution Guidance
That is just one simple flow of how TweetTraders can ensure users capitalize on real-time information on Twitter the instant it is born.
As with any investment, the user will need to evaluate the quality of the information provided and incorporate it with contextual information before acting on any trading opportunity. TweetTraders helps the information gathering process by setting filters, which can trigger an alert based on the type of coin which is selected. For example, for bigger currencies, such as $BTC and $BCH, only Twitter users with at least 10,000 followers can trigger an alert while for smaller currencies that threshold would be substantially lower.
TweetTraders
Twitter is the source of real-time information and TweetTraders is a platform that allows investors to profit from news the instant it is made available. Through our easy-to-use interface, users can quickly validate trading strategies related to how news can impact stocks or cryptocurrencies and set up real-time alerts for actionable insights that lead to profit. More importantly, with historical data down to the minute, TweetTraders improves trade execution by giving insight into when to buy or sell based on past trends.
Kernel
TweetTraders is powered by the Kernel platform. Kernel is a streaming data integration and rapid application development platform built by Ennate that allows you to make complex data-driven apps 10x faster. For more information on the power of our data connectors and lower-code application development process, visit ennate.io.
Thanks to Robert Naidoff, Mara Calvello and Kashyap Mukkamala.
