Analysis of Twitter's Influence on Bitcoin and Ethereum

Sanya Dod

Bitcoin, Ethereum, Regression, Social Media, Twitter

In the recent years, cryptocurrency has gained a lot of interest among the investors and academicians because of its increasing market capitalization. Bitcoin and Ethereum are one of the biggest digital currencies by market cap, yet their value doesn’t depend on institutional cash guidance or backed by sovereign gold, rather on individual insights and speculations. Similarly social media’s growth has been exponential –  100% increase in number of users in mere five years. Hence, examining the relationship between social media references and web search is critical for establishing or forecasting the value of cryptocurrency. In this research, twitter trends are utilized to gauge the price movement of digital currencies and establish if tweets can be utilized to impact the buying choice. Regression and correlation methodology are applied to assess the statistical significance and magnitude of strength of the relationship between closing price of Bitcoin and Ethereum with respect to volume of tweets.

https://doi.org/10.31871/IJNTR.7.8.7