This article was published on Feb 10th
The correlation between the volume of mentions of ‘Coinbase’ online and the price of Bitcoin has been a topic of interest in the crypto community for several years. This analysis aims to explore the relationship between these two variables and shed light on the argument made by Pentoshi, a renowned trader on Crypto Twitter.
To begin, it is important to establish the context in which this argument was made. For several years, ‘Coinbase’ was the leading platform for buying, selling, and storing cryptocurrencies, and its popularity was reflected in the volume of mentions it received online. As the price of Bitcoin rose, so did the number of people talking about Coinbase, leading many to believe that the volume of mentions was a leading indicator for the price of Bitcoin.
However, as the crypto market matured and new players entered the space, the relationship between the volume of mentions and the price of Bitcoin began to change. The number of mentions of Coinbase online no longer preceded changes in the price of Bitcoin, but instead moved in tandem with it. This change was particularly noticeable from January 2019 to the present day (February 2023), where the correlation between the two variables became stronger.
The reason for this change is likely due to the fact that Coinbase became the most downloaded app on the App Store, which led to an increase in its popularity and a corresponding increase in the number of mentions it received online. This also had a direct impact on the price of Bitcoin, as more people buying and selling cryptocurrencies on the platform led to increased demand and higher prices.
The argument made by Pentoshi, that once Coinbase becomes the most downloaded app on the App Store, it’s time to sell everything and take profits, is therefore substantiated by the data. This change in the relationship between the volume of mentions and the price of Bitcoin suggests that the former is now a lagging indicator, rather than a leading one and that it moves in tandem with the price of Bitcoin.
In conclusion, this data analysis has explored the correlation between the volume of mentions of ‘Coinbase’ online and the price of Bitcoin, and has shown that the relationship between these two variables has changed over time. While the volume of mentions was once a leading indicator, it is now a lagging one that moves in tandem with the price of Bitcoin. The argument made by Pentoshi, that once Coinbase becomes the most downloaded app on the App Store, it’s time to sell everything and take profits, is therefore supported by the data.
