The Lerner (Crypto) Sentiment Index (LSI) is a sentiment indicator created by entrepreneur and founder of BuySellHodl, Clifford Lerner. It can be used to calculate the user sentiment for cryptocurrencies and stocks, and to easily analyze the trends in user sentiment.
The LSI is calculated by splitting percentage of Hodl ratings evenly between the Buy and Sell percentages. Then divide the updated Buy and Sell percentages. The higher the result, the more positive the user sentiment. A result of 1.0 = neutral sentiment.
For example, if 50% of users say Buy, 20% say Hodl, and 30% say sell, the index result is: 1.5.
Buy % = the percentage of users saying to ‘Buy’
Hodl % = percentage of users saying to ‘Hodl’
Sell % = percentage of users saying to ‘Sell’
For example, for the week of May 27, 2019, users rated bitcoin as follows: 68% Buy, 24% Hodl, 8% Sell.
This generated an LSI of 4.0, which is a very positive sentiment. This ratio was due to the high “Buy %” of 68% and very low “Sell %” of only 8%.
The formula for Bitcoin is: (68% + 0.5 * (24%)) / (8% + 0.5* (24%)) = 4.0.
BuySellHodl publishes the LSI for all of the top cryptocurrencies. We also publish the LSI for the previous periods, so you can easily analyze the trends in user sentiment.
The LSI can calculated for cryptocurrencies and stocks as well. to easily determine the current user sentiment and trends over time.