The relationships between RedditSI and BTC exchange characteristics: Do Reddit users still control the market?

Valeriia Baklanova ()
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Valeriia Baklanova: HSE University

Eurasian Economic Review, 2025, vol. 15, issue 1, No 10, 285-306

Abstract: Abstract This study investigates the influence of Reddit community on Bitcoin market performance by introducing the Reddit Sentiment Index (RedditSI) as a tool to measure sentiment among Reddit users. The index was crafted based on the Bitcoin-related subreddits and classified with the Flair NLP model. Statistical analysis, including correlation, cointegration and causality tests, revealed significant relationships between RedditSI and BTC exchange characteristics (price, returns, absolute returns, volatility and volume), both in the short and long term. The findings highlight the importance of ongoing sentiment monitoring for investors, regulators and researchers to better understand the link between human psychology and cryptocurrency markets.

Keywords: Bitcoin (BTC); Investor sentiment; Natural language processing; Time series analysis (search for similar items in EconPapers)
JEL-codes: C10 C45 G14 G15 G41 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40822-024-00304-9

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