The impact of sentiment and engagement of Twitter posts on cryptocurrency price movement

Scott Li and Judy Ma

Finance Research Letters, 2024, vol. 65, issue C

Abstract: This paper examines the impact of sentiment and engagement from Twitter posts on the daily price movement of five top cryptocurrencies (Bitcoin, Ethereum, Dogecoin, Cardano, Ripple) from 2021 to 2022. Using the difference between positive and negative key word counts as a proxy for sentiment, we find that Twitter post sentiment has mixed effects on the short-term price movement of the five cryptocurrencies. We developed a novel composite impact index to measure the engagement level of original Twitter posts and find that it has negative impact on price movement of all five cryptocurrencies.

Keywords: Twitter; Social media engagement; Sentiment; Cryptocurrency (search for similar items in EconPapers)
JEL-codes: G10 G14 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612324006287
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324006287

DOI: 10.1016/j.frl.2024.105598

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().