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Trading the Dream: Does Social Media Affect Investors¡¯ Activity - The Story of Twitter, Telegram and Reddit

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  • Tiran Rothman

Abstract

Bitcoin has received much attention in the media and by investors in recent years, although there remains scepticism and a lack of understanding of this cryptocurrency. I add to the literature on Bitcoin by studying How and if social media platforms such as Twitter, Telegram and Reddit are affecting Bitcoin¡¯s prices and volume. Findings confirm that volumes of exchanged tweets may predict the fluctuations of Bitcoin¡¯s prices and mainly Bitcoin volume. I also find that Reddit and Telegram have greater impact on Bitcoin volume rather than Twitter. Results indicate that information about the use of Twitter and other social media platforms can assist in tracking real world behavior and may even predict real financial markets trend.

Suggested Citation

  • Tiran Rothman, 2019. "Trading the Dream: Does Social Media Affect Investors¡¯ Activity - The Story of Twitter, Telegram and Reddit," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(2), pages 147-152, April.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:2:p:147-152
    DOI: 10.5430/ijfr.v10n2p147
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    References listed on IDEAS

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    2. Selgin, George, 2015. "Synthetic commodity money," Journal of Financial Stability, Elsevier, vol. 17(C), pages 92-99.
    3. Balcilar, Mehmet & Bouri, Elie & Gupta, Rangan & Roubaud, David, 2017. "Can volume predict Bitcoin returns and volatility? A quantiles-based approach," Economic Modelling, Elsevier, vol. 64(C), pages 74-81.
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    Cited by:

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