Stellar Lumens (XLM) Forum with for newcomers and contributor's rewarded Check here




Twitter and Google Trends Influence Cryptocurrency Prices
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

#1
[Image: 8456df8ccdd1e05534a5944361677761.png]
Research conducted by Southern Methodist University showed that trends on Twitter and Google influence prices of cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH).

According to the data collected from the tweets on Twitter and Google search volume index (SVI), the number of tweets and their positive or negative sentiments affect the prices of cryptocurrency. The research indicated that the number of tweets changes first and then prices change later.

Theoretically, if the users’ sentiment towards a certain cryptocurrency could be measured, then the price pattern of that particular cryptocurrency could be easily estimated.

Positive Nature of Sentiment

In the research, tweet volume was one of the vanguard factors in the price change of digital currencies. Also, the study reveals that the sentiment on Twitter was typically naturally positive, if even there were downward movements in the prices of Bitcoin and Ether.

Then according to the data from Google, prices were connected with the searches of the keyword cryptocurrency especially Bitcoin and Ethereum. The increase in searches happen prior to the actual surge in prices of cryptocurrencies in question. 

[Image: nuII9zToT9hHsTpIJCNmv6ZI2SWY2cxRDMEjXaYd...m-l2-q-FUb]

Factors Dictating Bitcoin Price 

Back on November 28, 2018, Google searches for Bitcoin also increased significantly following the recovery of the cryptocurrency to trade around $5,600 (Nov 18) and the entire market at large. 

[Image: IkxVJpKdZfih_nFJKfLVKuId2vhf2zNQ4QtuD4o5...BFhlb8CI-w]

Still in April last year the Google search trends soared following the major BTC price upsurge from around $7,000 to $10,000 (April 24).

[Image: mvbMtEDlZl58hO6dOezz5M895o0BHZUD4zqpQqIW...Hdd83LcDrD] 

Advertising bulls Twitter, Google and Facebook banned cryptocurrency ads with an aim of shielding investors from fraud. In fact, after hearing the possible news that Twitter was planning to ban crypto ads led the price of Bitcoin (BTC/USD) to plunge to around $7,000 level and later rebounded to around $7,700 on the same day of the phenomenon.

[Image: ZaNz90wNivS_SDS_zd5-PmY_hvQVdCsc8Xa034id...rDXEXESW64]

Ad Ban by Facebook 

Also in late January last year, the price of bitcoin dropped by more than 11% (from almost $11,450 to $10,400 on January 27) following the crypto ads ban from Facebook, the second-biggest online advertisement provider in the world. 

[Image: PuPbUzXRuaRXDoPKr092XFJRVqUJdkfl7YfnHsCn...2qiHZIwD2q]

Generally, Google, Facebook, Twitter and other social media trends influence cryptocurrency price. No doubt, most traders trade according to the sentiments in the market, of which these advertising platforms play a central part.




Reply


Possibly Related Threads...
Thread Author Replies Views Last Post
  Steps to launch your cryptocurrency exchange business solution coinsbot 1 334 19-05-2020, 09:28 PM
Last Post: Milner
  Is White label a good idea to build a cryptocurrency exchange with secure? coinsbot 0 158 17-04-2020, 02:01 PM
Last Post: coinsbot
  Launch a Cryptocurrency exchange platform with IEO module coinsbot 0 305 03-03-2020, 01:22 PM
Last Post: coinsbot
  Why Haven’t Blockchain and Cryptocurrency been mass adopted? crytocure 0 270 25-02-2020, 12:00 PM
Last Post: crytocure
  Free Cryptocurrency: Complete Guide to Earning Free Crypto crytocure 1 430 25-02-2020, 10:13 AM
Last Post: coinsbot
  Are Cryptocurrency Staking Rewards Today Just Like the Masternode Fad of 2017? crytocure 0 324 23-02-2020, 11:22 AM
Last Post: crytocure
  Forex Or Cryptocurrency Exchanges: Where Is It More Profitable To Trade? crytocure 0 281 19-02-2020, 02:23 PM
Last Post: crytocure
  Cannabis Buzz Harshed by Regulations, Cash Shortage While Cryptocurrency Is Ready crytocure 0 224 18-02-2020, 03:21 PM
Last Post: crytocure
  Speeding Cryptocurrency Bull Market crytocure 0 265 16-02-2020, 11:26 AM
Last Post: crytocure
  ‘All the Banks Are Broke’ Speech Goes Viral on Crypto Twitter crytocure 0 354 14-02-2020, 12:35 PM
Last Post: crytocure



Users browsing this thread: 1 Guest(s)