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

Author

Listed:
  • Li, Scott
  • Ma, Judy

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.

Suggested Citation

  • Li, Scott & Ma, Judy, 2024. "The impact of sentiment and engagement of Twitter posts on cryptocurrency price movement," Finance Research Letters, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324006287
    DOI: 10.1016/j.frl.2024.105598
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    More about this item

    Keywords

    Twitter; Social media engagement; Sentiment; Cryptocurrency;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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