Bitcoin (BTC) Surges As Executives and Professionals Adopt “Futurity” Language
Bitcoin (BTC) is currently trading around $8,000, its price more than 100% up year-to-date. It is a remarkable move for the top crypto after the woes of the 2018 bear market.
Naturally, cynics see nothing other than what they call manipulation, referring to controversies surrounding stablecoin Tether. On the other hand, analysts have called bitcoin’s ceiling for a couple of months now.
Yet BTC has continued to rally, with the price surge attributed to institutional investors. Participants at Consensus 2019 have also made their case, pointing towards greater retail adoption.
All these seem to augur well for the pioneer coin, and more is expected given a new trend-line among professional traders and company executives.
They are talking about bitcoin in the future tense.
Is futurity behind the bitcoin rally?
According to web intelligence and alternative data provider Indexica, there is something fascinating going on: the way people talk about bitcoin now is different. Simply, it has changed- with the tense adopted particularly notable as it is now “future tense.”
Indexica employs text analysis technology to track the language used on the internet in what they term as “natural language processing.”
The platform uses tracking indexes to help interpret shared sentiment and contextualizes that to give real-time analysis of how people are talking about events.
And this alternative data has revealed something: the kind of discussion going on about bitcoin is not only one of ‘futurity’ but shows there is more maturity, more complexity.
Indexical CEO Zak Selbert thinks this is all great for bitcoin. As noted in Bloomberg, Selbert opines that company executives often “speak of good things they expect to happen on conference calls before they [good things] happen.”
However, these same executives will only talk about mistakes once they have happened.
According to Indexica, that is what “futurity” is all about – that aspect of discussing something with the future in mind.
No longer is the conversation basically about the 2017 crypto boom that saw BTC surge to $20,000. The language has changed, with the growing participation of institutions and custody services providing crypto with a route to added legitimacy.
The legitimacy that comes with more institutional investments has taken the conversation away from just moons and lambos to more genuine discussions on the value of cryptocurrencies to society.
For now, Indexica says, bitcoin’s futurity levels are so high- with a growing number of smarter people talking about it.
But going back to the recent price rally, could there be something else?
According to Token Analyst, there is something else- the fear of Tether. The analytics platform not only measures volumes of cryptocurrency exchanges but also gives an analysis of the exchange’s inflows and outflows.
Per the platform, there is a flight from Tether-affiliated Bitfinex. At the moment, outflows stand at more than $140 million in the last 24 hours, while inflows are about $60 million.
The flight from Bitfinex and Tether could be significant. In October 2018, when Tether faced such a flight, it is bitcoin that that provided the needed safe haven- not fiat USD.
Bitcoin provides the assurance, there is value in it. That could explain why platforms like Poloniex are seeing increases of over 400% in capital flows- the flight is from Tether to Bitcoin (BTC).
Does the crypto ecosystem rely that much on Tether as it used to? It appears that isn’t the case anymore. And that, as well as “futurity” could be the drivers of bitcoin’s recent bull run.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.