[2019-5-14] Twitter and Google Trends Influence Cryptocurrency Prices

davis196

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Quote from: manyexp on May 14, 2019, 07:02:11 PM

Research conducted by Southern Methodist University showed that trends on Twitter and Google influence prices of cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH).

According to the data collected from the tweets on Twitter and Google search volume index (SVI), the number of tweets and their positive or negative sentiments affect the prices of cryptocurrency. The research indicated that the number of tweets changes first and then prices change later.

Theoretically, if the users’ sentiment towards a certain cryptocurrency could be measured, then the price pattern of that particular cryptocurrency could be easily estimated.

...

Read More: https://coinidol.com/twitter-google-trends/

No way.I think it's the exact opposite.The cryptocurrency prices affect the tweets quantity and the google search volume.If the bitcoin price does up,more people start to search in google more frequently than before.
If the price does down,the search frequency will go down as well.

IUOMA

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Social Media always influenced the market, so off course also the crypto coins. So not really surprise

gabbie2010

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In the other way round social media google and twitter after hyping cryptocurrency thus triggering an upsurge in the price reaching a new higher high or ATH means many investors are in the market the end result is massive dumps invariably the price will drop rapidly just like 2017 when the so-called media hyped bitcoin after the price reached $20K spreading speculations that the price will hit $50K at the end price dumped

Lucius

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Social networks play a big role in creating public opinion, and for a relatively small market as it is cryptocurrency the impact can be quite large. It is not about amount of posts / tweets, but more about who is behind them.

Elon Musk is known for its sometimes weird tweets, and he can affect the price of some altcoins as was the case with Dogecoin on April 2 this year. He tweet " Dogecoin might be my fav cryptocurrency. It’s pretty cool." After that price is jump from $ 0.002459 to $ 0.004096 in two days.

1Referee

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Quote from: Fabienne_ayy on May 15, 2019, 01:15:10 AM

Google, Facebook, Twitter and other social media trends influence cryptocurrency price. No doubt, most traders trade according to the sentiments in the market, of which these advertising platforms play a central part. Roll Eyes

As counter indicator perhaps. No one buys X coin because a bunch of noobs there are hyped up about it.

The price kept going up till CNBC started reporting about Bitcoin and they even brought back their BTC/USD ticker. CNBC hosts are the perfect reflection of how average joes think, so based on that it doesn't surprise me that they are wrong 9 out of 10 times with their timing. All their past altcoin bets were wrong as well. Cheesy

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It's always price action -> surge in searches. It doesn't happen only when the price goes up. When there has been a massive decline in the price people search why Bitcoin is going down, whether or not it's dead, etc. This doesn't means anything on its own. I'm sure that most of these people don't end up buying or selling at all.

hatshepsut93

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How can we know that the trends influence the price and not vice-versa? I think the later actually makes more sense, when the price rises, people start looking for causes, news, analysis, and even simply checking the price compulsively. On the other hand, I don't see any reasons for sudden jumps of interests that lead to the price increase - the article kinda suggests that people suddenly start googling "bitcoin" and it makes the price rise.

joniboini

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While it's true that social media can influence or reflect the current sentiment of the market, it can be easily manipulated by somebody who has enough money and time to do it. For example, the XRP army is always going to create positive sentiment for XRP (though most of them are bots).

What's more important than social media is the fundamental changes that are being tweeted/posted on social media. In other words, the news rather than the channel. Unless the subject who tweeted/posted is someone that is so influential in this world that what he did can drive the actions of thousands of people.

davidtld

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Thats for sure. Facebook, twitter and even Instagram its where people communicate, be influenced, see the news and be active.

shamc

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People are happier when bitcoin rises and will be tweeting more to the no-coiners. Eventually they will take notice and join the party. First they will google about bitcoin and how to buy it, and then head over th coinbase.

CryptoBry

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Quote from: manyexp on May 14, 2019, 07:02:11 PM

According to the data collected from the tweets on Twitter and Google search volume index (SVI), the number of tweets and their positive or negative sentiments affect the prices of cryptocurrency. The research indicated that the number of tweets changes first and then prices change later. Theoretically, if the users’ sentiment towards a certain cryptocurrency could be measured, then the price pattern of that particular cryptocurrency could be easily estimated.

On my own, I believe that the sentiment expressed by many in social media sites are quite reflective of the things happening in the cryptocurrency marketplace and whether the sentiment can influence the moves of Bitcoin and Eth is actually hard to measure. It can actually be the other way around...developments in cryptocurrency markets are the ones shaping up the sentiment in the social media. The same thing can happen if there is a bearish market: a negative sentiment can prevail in the social media. It is funny that every time there is a bull run, studies like this are cropping up as if to provide the rationale behind why Bitcoin is going up and yet they can be silent when Bitcoin is down as there is no energy and excitement in there.

Fabienne_ayy

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Quote from: manyexp on May 14, 2019, 07:02:11 PM

Research conducted by Southern Methodist University showed that trends on Twitter and Google influence prices of cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH).

According to the data collected from the tweets on Twitter and Google search volume index (SVI), the number of tweets and their positive or negative sentiments affect the prices of cryptocurrency. The research indicated that the number of tweets changes first and then prices change later.

Theoretically, if the users’ sentiment towards a certain cryptocurrency could be measured, then the price pattern of that particular cryptocurrency could be easily estimated.

...

Read More: https://coinidol.com/twitter-google-trends/

Google, Facebook, Twitter and other social media trends influence cryptocurrency price. No doubt, most traders trade according to the sentiments in the market, of which these advertising platforms play a central part. Roll Eyes

manyexp

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Research conducted by Southern Methodist University showed that trends on Twitter and Google influence prices of cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH).

According to the data collected from the tweets on Twitter and Google search volume index (SVI), the number of tweets and their positive or negative sentiments affect the prices of cryptocurrency. The research indicated that the number of tweets changes first and then prices change later.

Theoretically, if the users’ sentiment towards a certain cryptocurrency could be measured, then the price pattern of that particular cryptocurrency could be easily estimated.

...

Read More: https://coinidol.com/twitter-google-trends/

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